HomeContributorsTechnical AnalysisEthereum Price Falls after Exceeding $3,000

Ethereum Price Falls after Exceeding $3,000

We previously wrote about the reasons for the positive sentiment in the ETH/USD market.

Optimism was added by a post on X (Twitter) by Vitalik Buterin about the so-called Werkle trees. This technology, which should (according to the information in the roadmap) be introduced in the future, it includes the advantages of:

→ reduced requirements for validators;

→ faster network synchronization, and others.

The ETH/USD chart shows that:

→ ETH price is within a larger uptrend (shown in orange);

→ the price is within the February bullish trend (shown by blue lines);

→ the market is in an overbought state, judging by the bearish divergence on the MACD indicator.

These arguments suggest that the market is vulnerable to a pullback.

Notice the wide bearish candle (shown by the red arrow) that is pushing the ETH price down from above the psychological USD 3,000 level. It may indicate a change in mood.

Since the beginning of February, the price of ETH has increased by approximately 30%. Therefore, some market participants could take profits from long positions at the psychological level. If a pullback occurs and is about 50% of the February rise, the price of Ethereum may fall to the median line of the orange channel to the support area of 2,700.

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