Ethereum (ETH) Crypto Dramatically Declined Due to a Broader Market Selloff This Week

Amidst this, the Ethereum price experienced its most significant single-day price decrease in several years. This further pushed traders to sell

Amidst a broader market selloff this week, the price of Ethereum (ETH) experienced its most significant single-day price decrease in several years, prompting traders to sell off their positions. At press time, the price of Ethereum was up 2.02% over the past 24 hours, trading at $2760. Its market cap stood at $333.29 Billion, and the trading volume jumped over 22% intraday.

Crypto Liquidations Hit $2.22 Billion: Is More Pain Ahead?

Several crypto investors liquidated their digital assets in a panic selloff, leading to decreases in the ETH price across crypto market segments.

According to data from Coinglass, traders withdrew $2.22 Billion in a single day. Long-term traders lost $605 Million amidst a severe price drop.

The market selloff caused substantial price drops for Bitcoin, XRP, Solana, and Dogecoin. Bitcoin experienced a 6% reduction, and XRP and Dogecoin lost 22% and 23%, respectively. Markets slid further when investors panicked and sold their leveraged bets instantly.

Is It the Right Time to Buy Ethereum?

In an X post, Eric Trump shared his positive outlook on Ethereum, suggesting that now is a perfect time to buy ETH.

Following the positive outlook he shared, the price of Ethereum saw a turnaround. Moving ahead, the token recovered more than 20% within the last 48 hours.

Will Ethereum Price Surge Past $3000: Analyst Weigh In

A post by IncomeSharks on X highlighted that the ETH price has rebounded from the liquidation zone and saw accumulation. The price action has offered a significant opportunity to bid as it could see an upsurge toward the $3000 mark ahead.

The CEO of BecauseBitcoin, a platform for cryptocurrency education, Max Schwartzman, also voiced hope. “If the market stabilizes, patient holders may see rewards,” he said.

Still, the general attitude is cautious. Traders are evaluating macroeconomic aspects that could affect the price of Ethereum in the near future.

Ethereum Price Prediction: Key Levels To Watch Out

The Ethereum price prediction on the daily timeframe indicates indecision among traders after a significant price pullback. However, the ongoing rebound may be short-lived as trading volume remains lower.

This conveyed that buyers were still not confident in accumulating and were in a dilemma. Until the bulls do not reclaim the $3000 mark, sellers may continue to distribute their holdings.

Moving ahead, a price decline could be seen ahead. The chart also displayed a bearish crossover, signifying a major trend reversal.

The daily RSI line stayed in the oversold region, highlighting bearish cues. In addition, the MACD indicator conveyed the same, representing a negative crossover on the chart.

Per the Fibonacci retracement levels, Ethereum’s immediate support zone of $2600 was the make-or-break level. A major price correction could be seen if the Ethereum price breaks below the 61.8l.

However, a cross above the 78.3% zone beyond $3100 could regain the buying momentum. Furthermore, a fresh recovery could be anticipated.

This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.

Varuni has been in the web3 space for half a decade, witnessing the changing dynamics of DLT, Blockchain and Web3. With 8 years of journalistic expertise, she has a keen interest in emerging technology and their impact on society. She has published news and on-chain analysis articles on Nasdaq as well as some of the top web3, crypto news firms. Currently, she heads The Coin Republic as the Editor-In-Chief.