Ethereum Price Hits $3,000? Here’s Why and Why It Might Not Happen!

• At the time of writing, ETH is testing the 0% Fibonacci level.
• Its daily active addresses also remained above 400,000.

Ethereum [ETH] The cryptocurrency has been on a roll over the past few weeks, pushing its price below $3,000 – a level it has held for some time. Now, despite the recent rally, it hasn’t been enough to get it back above the aforementioned level.

Considering the direction of other indicators and market dynamics, ETH may face some volatility in the future.

Ethereum sees death cross

Ethereum’s recent price trend, despite a notable 14.56% increase on August 8, has resulted in a worrying technical formation known as the Death Cross.

This pattern was most strongly demonstrated after a 3.10% drop on August 9, which took the price down to around $2,601. A fatal crossover occurs when a short-term moving average (shown here by the yellow line) crosses below a longer-term moving average (the blue line), indicating a possible long-term bearish sentiment in the market.

Source: TradingView

Additionally, the Moving Average Convergence Divergence (MACD) analysis indicated that ETH’s momentum was negative. At the time of writing, the MACD line was positioned below the signal line.

However, there seem to be subtle signs that this bearish momentum may be losing steam. The MACD histogram has shown signs of convergence, meaning that the negative bands are becoming less pronounced. This could indicate a weakening of the bearish momentum, which could precede a market reversal.

Bear and bull situation for ETH

Ethereum analysis using the Fibonacci retracement indicator has indicated several potential price trends. At the time of writing, the price bounced off the lows near $2,140 — the -61.8% Fibonacci retracement level. It then tested the 0% Fibonacci retracement level at around $2,589.77.

If the price holds above the 0% level ($2,589.77), it could test the next resistance levels at $2,870.67 (38.6% retracement) and $2,953.64 (50% retracement). A successful break above the 50% level could lead to a further recovery towards the 61.8% retracement level at $3,039.51 and possibly higher.

Source: TradingView

Conversely, if the price fails to stay above the 0% Fibonacci level and faces rejection, it may revisit the lower support levels.

A drop below $2,418.02 (23.6% decline) could pave the way for a retest of the recent low at $2,140. If the bearish momentum intensifies, Ethereum could drop below $2,140, ​​leading to fresh declines.

Ethereum’s Death in the Last Three Years

Here, it is worth noting that Ethereum has seen Death Cross For the third time in the past three years. The first instance occurred on January 27, 2022, when Ethereum was trading at around $2,500. After this fatal crossover, the price dropped to around $1,500 over the next few months before recovering with a golden crossover on February 10, 2023.

The second death cross occurred on September 2, 2023, when Ethereum was valued at around $1,600. However, this cross did not last long, as Ethereum’s value quickly rose and formed a golden cross on November 21, 2023.

After this golden cross, Ethereum recorded significant bullish trends, with the altcoin reaching the $4,000 level in early 2024.

Active Ethereum addresses remain decent

Daily Active Ethereum Addresses Chart Analysis Santiment It revealed a slight decrease during the past few days.

But despite this decline, the number of active addresses remained above the 400,000 threshold. On August 3, the number of active addresses exceeded 470,000, but by August 9, this number had fallen to around 425,000. At the time of publishing this report, the number of active addresses exceeded 230,000.

Source: Santiment

– Read Ethereum (ETH) price prediction 2024-2025

If daily active addresses continue to decline, this could lead to lower network activity and further downward pressure on the price.

Conversely, if active addresses stabilize or rise and the price breaks through key resistance levels, Ethereum could see a more sustainable recovery.