Ethereum experienced a dramatic decline on Friday, falling by 10.59% to trade at $3,114.64, which marks its most significant single-day loss since October 10. This sharp drop has reduced Ethereum”s market capitalization to $387.83 billion, accounting for 11.63% of the total cryptocurrency market.
The price action saw Ethereum fluctuating between $3,114.64 and $3,251.49 within a 24-hour trading window. Trading volume reached $49.03 billion, representing 22.43% of the overall cryptocurrency trading activity. The downturn was triggered after Ethereum failed to maintain support above the critical $3,500 threshold, leading to a breach of multiple support levels.
Technical analysis indicates that Ethereum is now trading below the $3,350 mark and its 100-hourly Simple Moving Average. A temporary support level was noted around $3,153 after the price dipped below $3,250.
In the last week, Ethereum has lost 4.73% of its value, with trading activity varying between $3,114.64 and $3,657.37. Despite these recent setbacks, Ethereum remains the second-largest cryptocurrency by market capitalization, following Bitcoin, which also saw a decrease of 5.09%, trading at $96,962.70.
As for the technical outlook, the failure to sustain upward momentum above $3,550 has led Ethereum into a short-term bearish zone. The decline intensified after breaking down through the $3,350 support level. Currently, a bearish trend line is forming on the hourly chart with resistance located at $3,500. For a potential recovery to take place, Ethereum needs to reclaim this resistance level.
The 50% Fibonacci retracement level from the recent decline, moving from $3,561 to $3,153, is situated near $3,350, marking a significant resistance area for any recovery attempts. If Ethereum is unable to recover this level, initial support may be found near $3,200, with the first major support zone anticipated around $3,150.
At present prices, Ethereum is trading 37.15% below its all-time high of $4,955.90, which was achieved on August 24. Meanwhile, Tether USDt has remained relatively stable, trading at $1.0005 with a marginal decline of 0.04%.
