Summary: Ethereum Corrects Gains Above $3,400
Currently, Ethereum is experiencing a correction in its price movement after touching the $3,500 mark. The cryptocurrency is currently trading above $3,400 and the 100-hourly Simple Moving Average. However, a recent break below a key bullish trend line with support at $3,420 indicates a potential continuation of the downward trend. Traders are closely watching the $3,350 support level, as a close below this point could lead to further declines in the price of Ethereum.
Examining Ethereum’s Price Movement
Here is a breakdown of the recent price action of Ethereum:
- Ethereum started to correct lower from the $3,500 resistance zone.
- The decline led to a breach of key support levels at $3,450 and $3,440, signaling a shift to a short-term bearish trend.
- A bearish trend line was formed with support at $3,420 on the hourly chart of ETH/USD, further supporting the downward movement.
- The cryptocurrency dipped below $3,400 and the 23.6% Fib retracement level, indicating a bearish sentiment in the market.
Potential Price Scenarios for Ethereum
Traders are looking at the following price scenarios for Ethereum:
- If Ethereum manages to stay above the 100-hourly Simple Moving Average at $3,380, it could attempt a fresh upward move.
- The immediate resistance is seen near $3,440, followed by major hurdles at $3,450 and $3,500.
- A successful break above $3,500 could propel Ethereum towards $3,550 and $3,620, with a potential rally towards $3,750 in the near future.
- However, failure to surpass the $3,440 resistance level may lead to further downside movement, with initial support at $3,400 and the 100-hourly Simple Moving Average.
Assessing Downside Risks for Ethereum
Traders are monitoring key levels for downside risks in Ethereum:
- The primary support level is located at $3,350, followed by additional support at $3,280 and the 50% Fib retracement level.
- A significant breach below $3,350 could drive Ethereum towards $3,200, with a critical support level at $3,150.
Technical Indicators for Ethereum
Evaluating the technical indicators for Ethereum:
- Hourly MACD – The MACD for ETH/USD shows waning bullish momentum.
- Hourly RSI – The RSI for ETH/USD has dipped below the 50 zone, indicating a shift in market sentiment.
- Major Support Level – $3,350
- Major Resistance Level – $3,440
Hot Take: Keeping a Close Eye on Ethereum’s Price Movement
As Ethereum undergoes a correction phase, it is crucial for traders to monitor key support and resistance levels to gauge the cryptocurrency’s next potential moves. Stay informed about market dynamics and technical indicators to make well-informed trading decisions in the volatile crypto space.
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