Ethereum Breaks Below $3,100: Bulls Must Defend $3,000 to Prevent Further Decline

Ethereum's short-term price action has been a topic of interest in the cryptocurrency market, with the second-largest cryptocurrency by market capitalization experiencing a significant decline in recent weeks. As of January 29th, Ethereum (ETH) has broken below the $3,100 support level, marking a crucial moment for the leading smart contract platform.

Analysts and traders have been closely monitoring Ethereum's price movements, with some predicting a potential local bottom formation around the $3,000 level. Pseudonymous trader Credible, known for making timely crypto calls, believes that Ethereum is at a pivotal point and that bulls must defend the immediate support at around $3,000 to prevent a further decline below $2,800.

According to Credible, Ethereum may be in the process of carving out a local bottom, which could pave the way for fresh rallies. The analyst predicts that ETH could potentially rally above $4,000 after bottoming out, although this remains to be seen as the market continues to evolve.

Turning to Bitcoin, Credible sees the current BTC correction as a positive development, as it sets the stage for a potential short squeeze. The analyst believes that the retracement is a healthy move, allowing liquidity to be taken from the lows of the range while leaving liquidity behind at the highs. While Credible expects Bitcoin to witness one more leg down after the surge, he predicts a parabolic upside move en route to $150,000 in a perfect scenario.

As the cryptocurrency market continues to navigate through volatile conditions, investors and traders alike are closely monitoring the price action of Ethereum and other leading cryptocurrencies. The recent decline in Ethereum's price has raised concerns among market participants, but some analysts remain optimistic about the long-term prospects of the leading smart contract platform.