Ethereum Price Breaks Below Major Support- Will ETH Hit $3,300 Soon?

As mentioned in my previous analysis, Ethereum price has broken below a critical support level. This has given a bearish outlook to ETH which had almost a 25% surge in May. The bearish price action is impacted by a concurrent drop in Bitcoin price as the pioneering digital token fell below $67,000 on Tuesday.

The repeated attempts by BTC and ETH to break above key resistances went in vain and both leading cryptocurrencies are giving bearish vibes. BTC is currently retesting the $66,800 level which must be held to avoid a major price decline in the coming days.

The ongoing downtrend in Ethereum price is quite surprising for many analysts as the spot Ethereum ETFs are close to making their debut. The only thing that remains in the process is the S-1 approval which might come as soon as the end of June.

Ethereum Turns Bearish Against Bitcoin

Last month’s speculation around the Ethereum exchange-traded fund gave it a lot of strength against Bitcoin. As a result, the ETH/BTC pair soared to its 2-month high of 0.057. However, the pair has been trending lower since then. Technical analysis suggests the next target could be the 0.051 support, which might play a critical role in deciding future price action.

Ethereum Price Must Hold $3,500 Support

After piercing through the $3,650 support, the ETH/USD pair is retesting the $3,500 level which is a major support on the daily chart. This level is currently acting as a major line in the sand for many traders. A daily candle closure below this level would flip the market structure as well as Ethereum price prediction bearish.

In that case, the lower support level would come in play with the first one being the $3,060-$3,130 demand zone. This level corresponds to an untested order block that might act as support. Just below this zone lies the key psychological level of $3,000.

However, it is worth mentioning that a sudden approval of S-1 filings by the SEC and the subsequent debut of ETH ETF could change the current bearish outlook on Ethereum. Therefore, proper risk management is necessary before opening any positions under the current market conditions.