The total market cap of cryptocurrency has decreased by approximately 5% to settle around $2.6 trillion on April 2nd. Investors are adjusting their cryptocurrency portfolios as the fourth Bitcoin (BTC) halving approaches in seventeen days, aiming for favorable returns.

The recent massive growth in the cryptocurrency industry, surpassing $1 trillion, was due to the approval of Bitcoin exchange-traded funds (ETFs) in the US. However, short-term crypto traders are taking profits and diversifying their portfolios to maximize gains. Recent data from market intelligence platform Santiment show that traders are moving towards stablecoins in anticipation of a market dip.

As a result, the cryptocurrency market is anticipated to face challenges in the upcoming days leading to the BTC halving event's impact. According to crypto analyst Ali Martinez, Ethereum's price might drop to $2,850 in the near future. Martinez highlighted that approximately 2 million Ether addresses bought around 1.64 million Ethers between $2,846 and $2,951. To prevent a potential drop below $2k, Ether's price needs to maintain support levels between $3,193 and $3,298 in the following days, as per the daily Fibonacci Retracement.