Ethereum (ETH) Risks New Lows if Price Fails to Reclaim the $3,000 Level

Ethereum (ETH) was trading around the $2976.91 mark on Thursday, up 2.35% in the last 24 hours, as per CoinMarketCap data. During the session, trading volume rose 2.16% to $32.44 billion. ETH is still down 11.01% over the last week as volatility persists across key altcoins.

Source: CoinMarketCap

Ethereum Holds Upward Channel

Analyst Alpha Crypto Signal pointed out that Ethereum continues to trade in a clear upward channel in the larger time frame. He noted that the larger framework is still there even after the recent downward trend. The lower channel boundary responded abruptly to the ETH, indicating further buyer action at support.

He explained that the channel base is the major level that is dictating the short-term direction of Ethereum. A successful re-entry into the channel midline would confirm the increasing momentum. The next target is the upper boundary in case buyers take over the lead.

Source: X

The analyst further cautioned that a positive downward confirmation of the channel base would undermine the current setup. This action would delay the short-term outlook for additional downward momentum. Until then, the pullbacks toward the lower zone were technically constructive.

Crypto analyst Ted Pillows mentioned that Ethereum is trying to regain the $3,000 level. According to him, a recovery in the $3,000–$3,050 area could give ETH an uplift of $3,200. He mentioned that the inability to reclaim this zone might subject Ethereum to the possible annual lows.

Source: X

Also Read: Ethereum (ETH) Drops 6% as Renewed Selling Pressure Hits Crypto Markets

Open Interest Rise and Liquidations Increase ETH Volatility

CoinGlass data shows that trading volume rose by 10.58% to $85.80 billion. Open Interest was up 0.32% at $39.08 billion, and the OI-Weighted Funding Rate is at 0.0053%.

Source: CoinGlass

In the last 24 hours, liquidations amounted to $189.41 million. The long positions were at $73.60 million, and the short positions amounted to $115.81 million. The imbalance is indicative of the intraday volatility in prices in the attempted recovery.

Source: CoinGlass

RSI Weakness and EMA Resistance Pressure ETH

The Relative Strength Index (RSI) of Ethereum indicates the loss of momentum. The RSI rate is 41.29, and the RSI moving average is 53.92. This marks increased cooling strength following the recent weekly reduction.

In the long term, Ethereum has short-term pressure as it trades below EMA 20 at 3,129.4. The level is an initial barrier to recovery efforts. To restore this level would further improve the immediate trend signals.

ETH is also below the EMA 50 at 3,141.9, which further supports an extended resistance band. The area should be cleared to add more bullish intent. Analysts consider it a significant technical clearing point.

Source: TradingView

The resistance levels have been maintained higher at EMA 100 at 3,268.1 and EMA 200 at 3,325.1. These are the long-term averages that determine the trend of Ethereum in the daily chart. To enhance any prolonged recovery perspective, ETH needs to surpass them.

Also Read: Dogecoin Faces Downside Risk as Daily Chart Confirms Bearish Trend