Is Ethereum price going to drop below $3k?

Ether is struggling to keep its footing in the market as the long-term chart has confirmed a major bearish signal.

The price of ETH falls below the key trend

ETH's daily candle closed below the 200-day moving average (200-DMA), a move with a history of previous corrections.

Conversely, the Spot Ether ETF posted a net outflow of $26.7 million on August 1, providing a small glimmer of hope for the ecosystem.

Ethereum fees have decreased since March

In the year During the first quarter of 2024, Ethereum generated average daily payouts of more than $10 million, according to the latest OnChain data. By March 2024, the average was up to $15 million per day. However, since Q2, the average annual payout has dropped to $3.5 million, with July gross revenue averaging just under $3 million.

Weekly active users have been relatively stable over the past six months. However, the annualized payment per month for Ethereum is 39%.

Related: What will the price of Ethereum (ETH) need to be to reach $4K?

This is largely due to the relative decline in total value locked or TVL since May, reflecting a slowdown in DeFi activity. More than $10 billion worth of assets have been destroyed since June 7, according to Defillama data.

Ether's price support is at $2,700, but will it hold?

According to data from IntoTheBlock, about 3.69 million addresses hold 1.24 million ETH, which is around $3,000. This particular price point indicates ether's close and psychological support.

However, it is relatively weak compared to the critical support of $2,700. In this region, 11.11 million addresses hold 59.07 million ETH, earning an average of $2,647.

This level was successfully tested several times as support in early July. Crypto trader Poseidon argues that this range may not be another experiment:

“It was really a depressing experiment. It looks terrible in low time frame. I see no reason why we shouldn't go below $2700. patience

Chart techniques, however, show that ETH is in high demand in this area, almost every time it has pulled back below $3,000 in the past three months.

As seen on the chart, equal lows are forming around $2,700. It is safe to say that a combination with the above inputs and another upside of $2,650–$2,700 is possible.

So, it shouldn't come as much of a surprise if Ether quickly finds its way back below $3,000. The bid range offers new dynamics and a change in market structure, but further consolidation at current levels could see the ETH price bounce back from the previous parity low.

This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.