Ethereum is Back Above $3,000 But Will it Hold?

After breaking below the critical $3,000 price and creating some panic, Ethereum managed to reclaim this price level again which could play a major role towards pushing the price to higher levels, but will the price be able to hold?

The second largest crypto asset broke above $3,000 earlier today after staying just below the price for a few days. Crypto analyst  Ted Pillows says a daily close above this level will prepare Ethereum for a rise to $3,200 to $3,400. On the contrary, the failure to rise to these levels could invalidate everything.

Bitcoin’s Failure Causes Ethereum Breakdown

Reclaiming the $3,000 price should have been a pivotal moment for Ethereum, but it quickly lost the level as Bitcoin’s weakness created a ripple in the market. Bitcoin itself reclaimed the $90,000 earlier today, but also lost it quickly, now trading at $87,628. The failure to maintain the rise above $90,000 has affected other assets, including Ethereum.

This is despite the fact that Ethereum has maintained a level of strength in its price action. Although it failed to hold the $3,000 before now, it also managed to hold above $2,900 and did not collapse to the $2,700 – $2,800 level which has been a critical support despite the market wide weakness.

Again, Ethereum has some contradictions in its metrics. The number of active addresses recently nearly doubled in one week, which shows interest from traders, investors and others. However, the price momentum still remains weak as a new bearish cross threatened it with a 58% crash 

At the time of this report, Ethereum has lost the $3,000 level and now trades at $2,961. According to pillows, this indicates a potential crash to lower levels, undoing every gain if the market sentiment doesn’t change soon. 

Ethereum Risks Drop to $2,000

Ethereum is still holding safely above the critical $2,700 – $2,800 at the moment, but if it loses that level, analysts see the price crashing to $2,000. This could be the result if the coin fails to reclaim and hold above the 200 Exponential moving Average (EMA).

This outcome would be a major setback for Ethereum, especially at this time when the crypto market is trying to recover from a prolonged downtrend. 

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