Will Ethereum (ETH) Pass the Critical Test or Slip Below $3.6K?

• Ethereum is currently hovering around the $3.6K level.
• The ETH market has witnessed liquidations totalling $166.48 million.

The crypto market has turned bearish, pushing the market cap down to $3.83 trillion after a 2.91% slip. The majority of the assets have fallen to the red zone, shedding their recent gains, including the largest asset, Bitcoin. After a series of recoveries, the largest altcoin, Ethereum (ETH), has been on the bearish track, losing by over 2.24% in value.

The potent ETH bears might block the return of bulls and strengthen their hold on the market. A jump over the $3.7K mark could give a hand for the asset’s fast market correction. The asset opened the day trading at a high of $3,759.44. With the bearish command in the ETH market, the altcoin price has plummeted to a low level of $3,532.86.

At the time of writing, the altcoin traded at around the $3,642.78 range, with its market cap settled at $439.72 billion. Meanwhile, ETH’s daily trading volume has dropped by over 9.19%, reaching $38.02 billion. As reported by Coinglass data, the market has experienced a 24-hour liquidation of $166.48 million worth of Ethereum during the interval.

Will Ethereum Bulls Take the Lead Again?

Ethereum’s Moving Average Convergence Divergence (MACD) line has crossed below the signal line. This crossover implies a bearish momentum. The asset’s price may be losing its upward strength, giving a cautious signal. Additionally, the Chaikin Money Flow (CMF) indicator, which is currently at 0.09, points to moderate buying pressure in the market, with the money flowing into the asset, hinting at accumulation.

If the altcoin’s bearish grip strengthens, the price might steeply slip toward the range of $3,636. Continued downside price trajectory could trigger ETH to face more correction, and the bears would send the price to the $3,630 zone. Assuming the Ethereum bulls re-enter the market, the nearest resistance at $3,647 might be tested. Upon breaking this level, the bulls could likely support the altcoin price, likely driving it above the $3,653 mark.

Moreover, the Bull Bear Power (BBP) reading of -79.01 indicates the strong bearish dominance, with potential weakness in the asset. Also, the selling pressure is present in the market. Ethereum’s daily Relative Strength Index (RSI) value found at 43.35 suggests that the sentiment is in a neutral to mildly bearish zone. But there is no clear reversal or breakout signal.