The cryptocurrency market is experiencing a significant downturn due to rising geopolitical tensions, adversely affecting Ethereum's value.
Current State of the Cryptocurrency Market
In recent days, price declines have been observed in the cryptocurrency market. Specifically, Ethereum (ETH) has dropped to around $2,250 after peaking at $2,877. Over the past week, ETH has lost 10% of its value, with a monthly decline of 16%.
Power of 3 Structure in Ethereum
On Ethereum's chart, the development of the 'Power of 3' structure can be observed. This concept comprises three phases:
1. **Accumulation Phase:** From May 10 to June 9, ETH oscillated within a range of $2,400 to $2,701, indicating an accumulation phase.
2. **Manipulation Phase:** On June 10, ETH surged to $2,879, likely as a result of manipulation.
3. **Distribution Phase:** Following this spike, ETH experienced a substantial drop, breaking key support levels and indicating the onset of the distribution phase.
Near-Term Predictions for Ethereum
If the 'Power of 3' pattern continues to unfold, ETH may retest the next key support level at $1,921. Furthermore, it is important to monitor the 100-day moving average at around $2,131, which could serve as temporary support.
Given the current market situation and geopolitical pressures, Ethereum's next movements may be highly volatile. It is essential to monitor trading volumes and ETH's behavior in critical support zones.
