Ethereum’s price has stabilized at the crucial $1,500 support level, but experts warn that a breakdown below this mark could trigger a significant downturn towards the $1,100 region. 💰 📉 📉
A recent technical analysis by Shayan reveals key reasons behind this potential scenario:
– **Historical Significance:** The $1,500 level has served as a major support zone historically, playing a psychological role for investors. However, the strong bearish momentum could lead to a temporary pause in price movement at this point.
– **Death Cross Warning:** The formation of a death cross on the 50-day MA crossing below the 200-day MA reinforces a bearish trend. This further highlights the potential for a sharp decline if the $1,500 support is breached.
– **Descending Channel and Onchain Analysis:** Ethereum’s price action on the 4-hour chart reveals it remains trapped within a descending channel. This movement has been punctuated by brief attempts at a bullish correction near the $1,700 level. However, renewed selling pressure could trigger a fresh downward move, potentially even breaching the crucial $1,500 support and targeting the lower range of $1,100.
In addition, Shayan’s onchain analysis highlights the presence of significant liquidity levels just below the $1,500 mark, offering potential selling opportunities for institutional traders.
**Understanding this critical point in Ethereum’s price history is key to navigating this market volatility.**