Ethereum Price Analysis: ETH Plunges Below $3K But What’s the Lowest it Can Go?

Ethereum’s price has been going through a frustrating consolidation period over the past few months following the price’s failure to break above the $4,000 resistance level.
Technical Analysis
By TradingRage
The Daily Chart
On the daily chart, the price has recently rebounded from the $2,800 mark and rallied toward the $3,500 resistance level. However, the latter has rejected the price to the downside.
The market has also dropped below the 200-day moving average, located around the $3,200 mark.
At the moment, ETH is trading below the $3,000 support level and could decline even further in the short term.
Source: TradingView
The 4-Hour Chart
Looking at the 4-hour chart, the recent rejection from the $3,500 resistance level can be part of a bigger bullish scenario.
The reason for this assumption is that the price has corrected almost 70% of its recent rally and is inside the Fibonacci retracement golden zone.
Therefore, a rebound from this area might be probable. Yet, the RSI is still below 50%, which indicates that the momentum is in favor of a further bearish move. Therefore, the market is in a tricky situation and investors should be cautious.

Source: TradingView

On-Chain Analysis
By TradingRage
Ethereum Exchange Reserve
Analyzing the fundamentals of the Ethereum network would be very beneficial for understanding the market dynamics. It provides an idea of the aggregate behavior of market participants.
This chart demonstrates the Exchange Reserve metric, which measures the amount of ETH held on exchange wallets.
As the chart displays, the metric has been on a steep decline over the last few months. Yet, it has recently experienced an increase, which indicates that many investors are depositing their coins onto exchanges. This behavior is out of fear and leads to excess supply, which could lead to a further decline in price.

Source: CryptoQuant

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