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Ethereum is hanging on the edge at $3,365, as this price level is actually far more important than you might think. The asset has clearly gained serious ground for a reversal after breaking above the 100 EMA, but right now, ETH is in some trouble and may reach $3,000 quite soon.
Ethereum has historically held up at this critical support level, which is located roughly where the $3,365 level is. If Ether were to fall below this mark, it would indicate that this support is no longer there and will probably descend to $3,000. This is the next significant psychological level. The 100 EMA frequently serves as a reliable gauge of the general trend, and a break below it may trigger a large sell-off.
The 200 EMA is the only significant support level between the 100 EMA and the 200 EMA in terms of technical support aside from the 200 EMA, which is located much further below. Ethereum may see a swift decline to the 200 EMA level, or roughly $3,000 in case of a breakdown.
Not only has Ethereum broken above the 100 EMA, but it has also broken below the consolidation channel it has been trading in for the last few weeks. This channel has given traders some predictability by providing a range in which ETH has moved. A break below $3,365 would mean that the market is leaving this channel to the downside, suggesting that the trend may be turning from bullish to bearish and potentially causing more losses.
The 100 EMA serves as a key support level, and a break below it might cause ETH to move rapidly toward $3,000 because there would be no other support level. Furthermore, a breach below this level would indicate a break out of the current consolidation channel and could indicate a reversal of the bearish trend.