Ethereum traders eye the 61.8% Fib level if ETH fails to hold the $3.2K support

ETH sold-off alongside the rest of the crypto market, leading analysts to warn of a drop to $2,900 if the current support at $3,200 fails.

The cryptocurrency market is nearly completely red on April 6 after hawkish comments from multiple members of the Federal Reserve highlighted their opinion that aggressively raising interest rates and cutting bond purchases would need to happen in order to combat inflation. Members did concede that this would result in negative pressure being placed on financial markets and this seems to be exactly what happened on April 6. 

Data from Cointelegraph Markets Pro and TradingView shows that the downward move for Ether (ETH) accelerated on April 6 and dropped the top altcoin to a low of $3,178 before the sell-off subsided and the price recovered to $3,200.

ETH/USDT 1-day chart. Source: TradingView

Here’s what several analysts are saying about this latest pullback for Ether and what levels of support to keep an eye on in case of a further move to the downside.

Ether could dip to $2,600

The outlook for Ether following a rejection of the monthly resistance at $3,400 was discussed by market analyst and pseudonymous Twitter user Rekt Capital, who posted the following chart noting that if this were to happen, “Ether could revisit $3,000” as indicated by the black line on the chart.

ETH/USD 1-month chart. Source: Twitter

Rekt Capital said,

“But September 2021 has shown that when black gets retested on a dip — downside wicks occur. So if Ether does dip to black, it could wick into the green higher low.”

Based on the chart provided, this would result in a potential drop to $2,602.

Will the $3,200 support hold?

A word of reassurance for concerned Ether holders was offered by crypto trader and pseudonymous Twitter user CryptoBatUSDT, who posted the following chart highlighting a retest of an important support level.

ETH/USDT 6-hour chart. Source: Twitter

CryptoBatUSDT said,

“The market structure is still bullish, currently in both the Range (Eq) and a Swing Low (HL) zone. Unless this level is lost, I will look to open a long position in these regions.”

Related: Bitcoin price drops to $43.5K, but data and BTC’s market structure project strength

Price is still between the 200-MA and 200-EMA

Further insight into the support for Ethereum at this current price level was provided by crypto trader and pseudonymous Twitter user Don Yakka, who posted the following chart noting the importance of the 200-day moving average (MA) and exponential moving average (EMA).

ETH/USDT 1-day chart. Source: Twitter

Don Yakka said,

“Very similar to BTC chart, the 200MA is resistance and the 200EMA is support, as long as 200EMA holds on [the] daily, I would not panic.”

The overall cryptocurrency market cap now stands at $2.003 trillion and Bitcoin’s dominance rate is 41.5%.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Every investment and trading move involves risk, you should conduct your own research when making a decision.

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