Two popular digital currencies, Ethereum (ETH) and Bitcoin (BTC), are currently undergoing significant tests in the market. Ethereum recently dropped below the important $3,460 mark, causing concern among enthusiasts and investors. This decrease indicates potential trouble for bullish investors, with the possibility of Ethereum's price falling even lower to $2,850 or beyond.

The fall below $3,460 has raised worries among Ethereum supporters as there seem to be weak support levels to resist further declines. This situation increases the likelihood of a prolonged bearish period for Ethereum, creating uncertainties about its short-term market stance. Analysts warn that without strong buying interest or market catalysts, Ethereum's value could continue to decrease, challenging the confidence of investors and traders in the cryptocurrency industry.

Bitcoin also Confronts Market Challenges

Bitcoin, the leading cryptocurrency based on market capitalization, is also facing market pressures. It is currently retesting the 4-hour 200-day exponential moving average (EMA) and weekly support levels, which are critical indicators of its future price direction. A successful rebound from these levels could indicate strength and a potential upward trend, while a failure to hold might result in increased selling pressure.

Recent market movements have caused a significant number of long positions to be liquidated, leading to a virtual reset in funding rates. This change suggests a possible shift in trader sentiment towards caution in the current market environment. Nonetheless, Bitcoin's price is currently situated in a demand zone, which could attract buying interest and provide hope for bullish investors searching for signs of a higher low.

As investors and traders analyze these developments, they are closely monitoring for indications of a market reversal or further decline. The upcoming days will be crucial in determining the short-term trajectory of both Ethereum and Bitcoin. Market participants are advised to stay informed and anticipate volatility as the cryptocurrency market navigates through these uncertain times.