Ethereum’s price recently experienced a downside correction from the $3,885 resistance zone, leading the cryptocurrency to fall below $3,800. This correction came after Ethereum failed to surpass the $3,880 resistance level, signaling a bearish trend in the market. The price is currently trading below $3,840 and the 100-hourly Simple Moving Average, indicating further potential for a slide towards $3,720.
One significant development during this correction was the break below a key bullish trend line with support around $3,830 on the hourly chart of ETH/USD. This break signified a shift in market sentiment from bullish to bearish, adding to the downward pressure on Ethereum’s price. Now, the pair could initiate a fresh upward move only if there is a close above the $3,720 support level, otherwise, the price may continue to decline.
Despite Ethereum’s struggle to clear the $3,885 level, the bulls are showing resilience near the 61.8% Fib retracement level. However, the price remains below $3,840 and the 100-hourly Simple Moving Average, indicating a lack of strong upward momentum. The immediate resistance levels to watch are at $3,810 and $3,840, with a potential break above the latter leading to further gains towards $3,920 and potentially $4,000. On the other hand, failure to break above $3,840 could result in a continuation of the downward trend.
In case of further downward movement, initial support is seen near $3,765, followed by a major support zone around $3,750. The key support level stands at $3,720, a break below which could trigger a sharper decline towards $3,650 or even $3,550. It is essential for Ethereum to maintain support at critical levels to avoid prolonged downside pressure in the near term.
The hourly MACD for ETH/USD is currently in the bearish zone, indicating a strengthening downward momentum. Additionally, the hourly RSI has dipped below the 50 zone, signaling increased selling pressure in the market. These technical indicators further confirm the likelihood of a continued downside movement in Ethereum’s price.
Ethereum’s price is facing significant challenges in maintaining upward momentum, with resistance levels proving difficult to overcome. The recent correction and break in trend line suggest a shift towards a bearish market sentiment, highlighting the importance of critical support levels in sustaining Ethereum’s price in the face of selling pressure. Traders and investors should closely monitor these key levels and technical indicators to navigate the current market conditions effectively.
Leave a Reply