Is Ethereum Heading Into a Bearish Zone This Weekend?

• Ethereum’s price has fallen over 15% below the crucial $3,000 range, indicating a bearish trend.
• A major whale dumped 26,600 ETH worth over $82.5 million.

Amid recent market turbulence, Ethereum has struggled to regain its footing after a significant 15% drop below key support levels. The crypto’s price plummeted below the crucial $3,000 mark due to a broader market downturn triggered by BTC. Bitcoin payouts from the Mt. Gox bankruptcy, flooding the market with additional supply and exerting downward pressure on prices across various altcoins.

A whale dumped 26,600 ETH, which was worth approximately $82.5 million at $3,102. This move, aimed at repaying debt on Aave, initially led to a sharp 3% decline in ETH value. However, the same whale strategically re-entered the market at a lower price point, borrowing significant funds to capitalize on the dip.

Over the past 24 hours alone, $639.27 million in liquidations underscored the heightened volatility and risk exposure within the crypto market. In that $161 million, ETH alone was liquidated.

Will Ethereum Price Recover to $3000?

Ethereum’s price was rejected at a descending trendline on Monday, resulting in a 19% decline over three days. By Thursday, it had dropped below $3,240, and today ETH approached its May 1 low of $2,817.

Currently, Ethereum is showing signs of stabilization, with prices attempting to reclaim the $2,900 threshold. At the time of writing, ETH traded at $2,933 with a market cap of $350 billion. The daily trading volume surged by over 49%, possibly due to increased investor activity.

If Ethereum closes below its May 1 low of $2,815, it could drop further to around $2,650, a decline of 6.5%. Additionally, the relative strength index (RSI) on the daily chart suggests bearish momentum, indicating the potential for continued decline.

Conversely, a daily candlestick close above $3,500 would signal bullish strength, potentially pushing Ethereum up 6% to revisit its high of $3,750. However, Ethereum is likely to consolidate between $2,900 and $3,300.

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