Ethereum Price Analysis: ETH Plunges To The $3,000 Psychological Level

Daily Ethereum ETH Price Forecast

3 Min Read
Last Updated July 23rd 2021
  • Ethereum price has flipped 20-day SMA from support to resistance
  • Over the last week, ETH has lost >$1,000 in its overall valuation.
  • Since May 12, the Ethereum price has crashed by >$1,000 going from $4,175 to $3,100.

    Before this crash, Ethereum had jumped from $1,400 to $4,175, between March 1, 2021 to May 11. Let’s take a closer look with technical analysis.

    Ethereum Price Flashes Multiple Sell Signals

    Over the last seven days, the Ethereum price has flipped the 20-day SMA from support to resistance and reversed the parabolic SAR from positive to negative. Plus, the MACD shows increasing bearish market momentum.

    Image: ETH/USD daily

    Ethereum ETH Daily Chart

    Looking at the volatility chart over the last week, we can see that the ETH volatility was extremely high in the beginning. Lately, the volatility has decreased, so don’t expect anymore crazy Ethereum price swings.

    Image: IntoTheBlocks

    Ethereum ETH Volatility Chart

    Ethereum Whale Addresses No Dropping Their Holding

    Ethereum ETH Whale Addresses

    Santiment tweeted:

    "#Ethereum's largest addresses have not budged on the recent volatility that dropped the price to as low as $3,144 today. There are just 8 less addresses with 10k+ $ETH than there were a week ago, while addresses with 100-10k $ETH are at a 3-year low."

    Along with this, the ETH supply in exchanges is continually going down.

    Ethereum ETH Exchange Supply

    However, active addresses and active deposits are continually going down.

    Ethereum ETH Active Addresses

    Dogecoin More Popular Than NFTs For Gen Z

    A survey by betting app Gamblers Pick recently found that nearly a quarter of young, new crypto investors are actively investing in meme-driven digital assets like Dogecoin. The "meme" sector, as CryptoSlate data shows, commands more than 3.43% of the entire crypto market cap. 

    The study interviewed 872 people about their investment strategies to explore how different generations were investing across financial markets. 24% of the respondents were ‘Gen Zers’ (born between late 1990-early 2010s), 27% were millennials (born between 1980-1995), 25% were Gen Xers (mid-1960s to early 80s), and 24% were baby boomers or older (post the world wars and 1960s).

    A quarter of respondents said that they invest frequently, and only 12% said they rarely did it. On a generational level, over 28% of Gen Zers said they were constantly investing. 

    According to the survey, a staggering 55% of Gen Zers said they were investing majorly in the stock market against the 46% who said they paid long-term crypto bets. Interestingly, 23% said they actively invested in ‘memes’ (think Dogecoin, Shiba Inu, and others).

    16% of Gen Xers said they invested in meme coins as well, while 7% of baby boomers stated they dabbled in memes. Only 9% of the surveyed participants said they made investments in digital collectibles or non-fungible tokens (NFTs), with other generations investing even less - 7% for millennials, 2% for Gen Xers, and 3% for Baby Boomers. 

    As per the data, Gen Zers were less likely to invest in NFTs but more likely to invest in clothing and sneakers instead. The survey discovered Gen Z’s investment habits were more likely to be influenced by Reddit, Twitter, and other social media, while older generations are more likely to have their investments influenced by magazines, newspapers, and TV.

    Ethereum Price Is Expected To Reach These Levels

    The Ethereum price will continue to slump under the negative market momentum and drop towards the $3,000 support narrier. A further break will take it to the 50-day SMA($2,765).

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