After hawkish comments by several Federal Reserve members, the cryptocurrency market has turned nearly entirely red since April 6. They stated that they believe aggressively raising interest rates would be necessary to combat inflation. The Federal Reserve members acknowledged that this would put negative pressure on the financial markets. This is exactly what happened April 6.
Cointelegraph Markets Pro and TradingView data show that Ether (ETH), the leading altcoin, fell to $3,178 on April 6. The sell-off subsided and the price recovered back to $3,200.
ETH/USDT 1-day chart. Source: TradingView
Below are the views of several analysts on Ether’s latest pullback. Also, we have a list of levels of support that you should be monitoring in case Ether moves further to the downside.
The price of Ether could drop to $2,600
Market analyst Rekt Capital posted the following chart, noting that Ether could re-enter $3,000 if it were to fail the monthly resistance at $3,000.
ETH/USD 1-month chart. Source: Twitter
Rekt Capital said,
“But September 2021 has demonstrated that when black is retested on dips — downside wicks happen.” If Ether dips to black, it may wick into the higher green low.
This chart shows that there could be a drop of up to $2,602.
Is the $3,200 support still valid?
Crypto trader and pseudonymous user CryptoBatUSDT posted this chart, which highlights a retest at an important support level.
ETH/USDT 6-hour chart. Source: Twitter
“The market structure remains bullish. Currently, it is in the Range (Eq), and Swing Low (HL). zones. If this level is not lost, I will be looking to open a long-term position in these areas.
Related: Bitcoin Price Drops to $43.5K but Data and BTC’s Market Structure Project Strength
The 200-MA and 200 EMA price ranges are still in place
Don Yakka (crypto trader, pseudonymous Twitter User) provided further insight into Ethereum’s support at the current price level. He posted the following chart that noted the importance of the 200-day moving mean (MA), and exponential moving averages (EMA).
ETH/USDT 1-day chart. Source: Twitter
Don Yakka said,
“Very similar to BTC Chart, the 200MA represents resistance, and the 200EMA support. As long as the 200EMA holds [the] daily], I wouldn’t panic.”
The total cryptocurrency market is now worth $2.003 trillion, and Bitcoin is the dominant currency at 41.5%.
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