Ethereum Plunges Below 0.03 BTC, Investors Brace for Further Declines

Ethereum's price has plummeted below the critical 0.03 level against Bitcoin, with Ethereum (ETH) currently valued at $2,898.67. This significant drop has raised concerns among investors and analysts, who are closely monitoring the cryptocurrency market's bearish outlook.

Ethereum's recent price struggles highlight a critical juncture as daily indicators signal potential further declines in the crypto market. Long-term holders display confidence, yet recent market dynamics indicate a bearish sentiment that may lead Ethereum to test lower price levels. As stated by market analysts, "The current price action reflects ongoing investor anxiety, particularly given the inability of Ethereum to maintain support at $3,400."

For the second time in recent months, Ethereum has struggled to maintain its position above the significant $3,400 level, marking a pivotal point for the altcoin's trajectory. Following an initial support phase during mid-2024, traders witnessed this level flipping to resistance, causing alarm among investors. Historical data suggest that the $3.4k-$3.5k zone played a crucial defensive role earlier this year before succumbing to selling pressure. The lack of significant bullish momentum since then has resulted in a series of lower highs, compounding bearish sentiment in the market.

Recent analyses reveal a concerning trend with the daily Relative Strength Index (RSI) registering below 50, reinforcing a bearish outlook. This scenario, paired with the On-Balance Volume (OBV) hovering around critical support levels, indicates diminishing buying interest and increasing seller dominance. Moreover, the recent liquidation heatmap paints a troubling picture for Ethereum. Potential targets appear to be focused below the $3,000 threshold, with significant liquidation zones identified at $2,800 and $2,700. The implications of these levels are critical for traders looking to navigate the current market landscape.

Despite bearish price movements, long-term holders of Ethereum seem resilient. Analysis of on-chain metrics suggests that profit-taking among long-term holders (LTH) remains moderate, illustrating a steadfast belief in Ethereum's potential recovery. However, this confidence may not fully counterbalance the market's prevailing bearish narrative. With expectations for a downward trend becoming increasingly credible, proponents believe that strategic positioning is key as ETH navigates these tumult