Ethereum Price Soars to New Highs, but Bears Take Control
Ethereum, much like Bitcoin, experienced a significant surge in price, reaching a new multi-month high above $3,800. However, the excitement was short-lived as the bears swiftly took control and caused a major crash.
The price of Ethereum plummeted over $500 from its high of $3,827 and dropped to the $3,200 support level. This sudden decline was accompanied by a break below a key bullish trend line with support at $3,620 on the hourly chart of ETH/USD.
After hitting a low of $3,211, Ethereum is now attempting to recover and regain its upward momentum. The price has managed to climb back above the $3,500 level and is currently trading near the 100-hourly Simple Moving Average.
Key Resistance Levels for Ethereum
In order for Ethereum to resume its upward trajectory, it must first overcome some key resistance levels:
- The immediate resistance is near the $3,550 level.
- The first major resistance is at $3,600 or the 61.8% Fib retracement level.
- If Ethereum manages to surpass these levels, the next major resistance awaits at around $3,680.
- Above $3,680, the bulls may gain significant momentum and push the price towards the $3,820 level.
- If Ethereum continues to rally beyond $3,820, it could even reach the $3,950 resistance. Further gains might even lead to a test of the psychological level of $4,000.
Potential Downside Correction
If Ethereum fails to break through the $3,600 resistance, it may experience a downside correction. In such a scenario:
- The initial support on the downside is near the $3,440 level.
- The first major support is at the $3,400 zone.
- If the price continues to decline, the next key support lies at the $3,340 zone.
- A clear move below $3,340 could lead to a further drop towards $3,220.
- If the bears maintain control, Ethereum may even test the $3,120 level.
Technical Indicators for Ethereum
Two key technical indicators provide insights into Ethereum’s current situation:
- Hourly MACD: The MACD for ETH/USD is losing momentum in the bullish zone.
- Hourly RSI: The RSI for ETH/USD has fallen below the 50 level.
Hot Take: Bears Take Over as Ethereum’s Rally Comes to an Abrupt Halt 🐻
Ethereum experienced an exhilarating surge in price, reaching new highs above $3,800. However, this excitement was short-lived as the bears took control and caused a significant crash. The price plummeted over $500 and dropped to the $3,200 support level. Despite attempting to recover and trading near the 100-hourly Simple Moving Average at around $3,500, Ethereum faces strong resistance levels that must be overcome for any chance of a rally. On the downside, if Ethereum fails to break through these resistance levels and falls below key support levels, it may experience further losses. Technical indicators suggest a loss of momentum in the bullish zone. The current situation calls for caution and close monitoring of Ethereum’s price movements.
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