Ethereum (ETH) Faces Crucial Moment as Market Value Drops 6%, Attempts Bearish Move

Ethereum (ETH), the largest altcoin by market value, experienced a sharp drop in its native token, Ether, falling 6% to around $3,092 on July 4.

Ethereum (ETH) price experienced a significant drop on July 4, falling 6% to around $3,092, marking its worst daily performance in the past three weeks.

This downturn comes amid concerns over a potential Bitcoin (BTC) market dump and decreasing institutional interest in the crypto market.

According to veteran crypto analyst Wolf, ETH is now attempting to break below the diagonal support, a move that, if successful, could indicate further downward pressure.

This crucial support level has been key in maintaining ETH’s recent price stability. For the bulls to regain control and prevent a bearish downturn, the daily candle must close with a wick and return above the diagonal support.

This move would signal that the bulls are still in the game and could potentially push the price higher. However, if ETH fails to close above the diagonal support, it could spell trouble for the bulls.

A confirmed break below this level could lead to increased selling pressure and further price declines, making it a crucial moment for Ethereum traders and investors.

With only days left before the Spot ETH ETF listing, investors are eagerly awaiting the final submission date for the S-1 Form for ETH ETF applications, which is set for July 8.

There is speculation that the Securities and Exchange Commission (SEC) might approve the listings next week. If the approval happens, it could trigger a significant price increase.

Any rise in ETH’s price is likely to be driven by the SEC’s approval or by strong initial inflows or maybe outflows in the first few days. The first targets to watch are $3,413 and $3,475.

Meanwhile, Ether’s recent losses are part of a broader pullback that began after the price encountered resistance at the 200-4H exponential moving average (EMA) and the upper boundary of its descending channel.

As of July 4, ETH is testing the lower trendline of this channel for support, with the potential for a rebound. However, Ethereum is trading at $3,020 reflecting a drop of 6.8%. Despite the decline 24hours trading volume has seen a surge of 43% with a market cap of $372 billion.

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