Key Points
- Ethereum’s price fell below $3000 on April 30, leading to a surge in social activity.
- The coin’s decline may continue if bearish momentum increases.
On April 30, the price of Ethereum (ETH) fell under $3000.
This drop triggered a rise in social discussions about the cryptocurrency.
Increased Social Activity
Santiment, an on-chain data provider, reported that Ethereum ranked second in social discussions, following Bitcoin (BTC).
Between April 29 and 30, Ethereum’s social dominance increased by 150%, with more discussions on platforms like Telegram, Reddit, and 4Chan.
Typically, a rise in social activity following a price drop indicates a potential price correction.
Price Outlook
However, the daily price chart suggests that Ethereum may not rebound significantly in the short term.
The coin’s Fibonacci Retracement levels showed that the drop below $3000 breached an important support level at $3145.
With the coin trading at $2,899, there’s a high chance of further decline as demand decreases.
Ethereum’s key momentum indicators, including its Relative Strength Index (RSI) and Money Flow Index (MFI), were below their respective center lines, indicating a preference for coin distribution over accumulation.
Additionally, the coin’s MACD line was below its signal line, suggesting a rise in bearish momentum, which traders often interpret as a potential sell signal.
If bearish momentum continues to rise, Ethereum’s next price point could be $2867.
On the other hand, if demand increases and a price rally is initiated, Ethereum might correct its movement, reclaim the $3145 support level, and possibly rally towards $3300.
