ETH nearing key support at $3,000, can it hold?

After several days of hesitation, ETH price is moving back towards the $3,000 support level. The question is, can the bulls save the market from further losses?

• Major support levels: $3,000, $2,750
• Key resistance levels: $3,300, $3,600, $4,000

The last three days have brought a lot of fear into the markets and ETH price is trending down towards the $3,000 support. The market is currently at a key crossroads and in the case of ETH, a break of this key support level would be disastrous for the bulls. The previous level at $3,300 is now acting as resistance.

The next few days will be crucial.

 Source: TradingView

Technical indicators

Volume: Trading volume during the last decline was high. This shows that the bears are having a big party and the fear in the market is increasing day by day. With ETH currently sitting near a critical support level, the bulls are likely to hold here.

RSI: After breaking out of the oversold zone last week, ETH failed to recover and now the daily RSI is falling back into the oversold zone below 30. If the bulls fail to defend the critical support, the RSI will turn lower.

MACD: After the daily MACD completed a bullish cross, the price failed to maintain its upside momentum and its histogram generated a lower momentum bar. This is a sign of weakness and shows that the bulls are not ready to start a rally.

 Source: TradingView

Perspectives

The current trend of ETH is declining. However, it should also be noted that the bulls might try to hold the key support level.

Short term price prediction

ETH has had a rough week after falling almost 10%. The critical support at $3,000 is really the last line of defense to maintain optimism in the overall market. If buyers fail to sustain the price above this level, the cryptocurrency can fall to much lower levels.

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