Ethereum price forecast: ETH could dip below $3k amid bearish PA

Key takeaways

• ETH is down 10% and now trades around $3,100 per coin.
• The bearish performance comes as the broader crypto market records a massive selloff.

ETH dips 10% amid wider market selloff

Ether, the second-largest cryptocurrency by market cap, has lost 10% of its value in the last 24 hours, sparking increased profit-taking and loss realization, as prices approached the cost basis of whales.

This latest development comes as Ethereum investors have intensified their selling activities over the past few days. Data obtained from Santiment revealed that investors have booked over $500 million in profits and $100 million in losses since Sunday. 

In addition to that, Ether’s price is approaching the average cost basis or realized price of whales with a balance of 10K-100K ETH, which is around $2,900. A dip below this cost basis will spark intense selling pressure as the whales look to cut losses.

Whales have been key in absorbing selling pressure since ETH’s price decline accelerated over the past month, as they have increased their collective balance by 890K ETH during the period. 

ETH could dip below $3k as selling pressure intensifies

The ETH/USD daily chart remains bearish and efficient as Ether has lost 10% of its value in the last 24 hours. The coin faced rejection at the previous broken trendline around $3,592 earlier this week and has dipped by 10% since then. At press time, ETH is trading at $3,140 per coin. 

If the selloff continues, ETH could lose the $3k support level and dip towards the $2,900 psychological level. Failure to close the daily candle above the $3,170 region could spark further selloff for Ether.

Similar to Bitcoin, Ethereum’s RSI and MACD indicate bearish momentum gaining traction, signaling a deeper correction ahead.

However, if Ether recovers and closes the daily candle above $3,170, it could rally towards the next resistance level at $3,592.

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