Ethereum Price Dips Below $3,350 Support Level
The price of Ethereum has experienced a downside correction below the $3,350 zone. It is currently trading below both the $3,350 level and the 100-hourly Simple Moving Average. There is a significant bearish trend line forming with resistance at $3,420 on the hourly chart of ETH/USD (data feed via Kraken). If the price fails to break above the $3,420 and $3,500 resistance levels, it could continue its decline.
Ethereum price has remained in a short-term bearish zone below the $3,550 and $3,500 levels. It recently dropped below the $3,350 support level, further extending its movement in a short-term bearish zone. The price even fell below the $3,200 support level and reached a low of $3,162 before consolidating losses.
Currently, Ethereum is displaying several bearish signs below the 23.6% Fib retracement level of the downward wave from the $3,675 swing high to the $3,162 low. Moreover, it is trading below both the $3,350 level and the 100-hourly Simple Moving Average.
Resistance Levels for Ethereum Price
The immediate resistance for Ethereum price is near the $3,280 level. However, there are two major resistance levels that need to be overcome for a bullish rally:
- The first major resistance is near the $3,350 level.
- The next key resistance sits at $3,420.
Additionally, there is a major bearish trend line forming with resistance at $3,420 on the hourly chart of ETH/USD. This trend line coincides with the 50% Fib retracement level of the downward wave from the $3,675 swing high to the $3,162 low.
If Ethereum manages to break above these resistance levels, it may gain bullish momentum and rally towards the $3,650 level. Further gains could even push the price towards the $3,800 resistance. A significant breakthrough might even result in a test of the $4,000 level.
Potential for Further Losses
However, if Ethereum fails to clear the $3,420 resistance, it could continue its downward movement. The initial support on the downside is near the $3,260 level. If this support is breached, the next major support lies around the $3,200 zone. A clear move below this zone might send the price towards $3,120. Any further losses could potentially bring the price down to the $3,000 level.
Technical Indicators
The MACD for ETH/USD is gaining momentum in the bearish zone according to hourly indicators. Additionally, the RSI for ETH/USD is now below the 50 level.
It is important to keep an eye on these technical indicators as they can provide valuable insights into potential market trends and price movements.
Conclusion: Whatโs Next for Ethereum?
Ethereum has experienced a downside correction and is currently trading below key resistance levels. The outcome of its battle with these resistance levels will determine its future direction:
- If Ethereum breaks above the $3,420 and $3,500 resistance levels, it may gain bullish momentum and rally towards higher price levels.
- However, if Ethereum fails to clear these resistance levels and continues its decline, it could face further losses.
Traders and investors should closely monitor the price action and key support and resistance levels to make informed decisions. Technical indicators such as the MACD and RSI can also provide valuable insights into market sentiment and potential price movements.
Hot Take: Ethereumโs Battle with Resistance Levels
Ethereum is currently facing a crucial battle with resistance levels as it tries to maintain its upward momentum. The outcome of this battle will determine whether Ethereum continues its bullish rally or experiences further losses.
Traders and investors should pay close attention to the $3,420 and $3,500 resistance levels. A breakthrough above these levels could signify a bullish trend and potentially push the price towards higher levels.
On the other hand, if Ethereum fails to clear these resistance levels, it could continue its decline and face further losses. In this scenario, traders should closely monitor key support levels such as $3,260 and $3,200.
As always, it is important to conduct thorough research and analysis before making any investment decisions. Keep an eye on technical indicators such as the MACD and RSI for valuable insights into market sentiment and potential price movements.
Sources: ETHUSD on TradingView.com
Newt Bettec emerges as an intellectual voyager at the intersection of crypto analysis, meticulous research, and editorial mastery. Within the digital labyrinth of cryptocurrencies, Newt’s intellect traverses intricate corridors, resonating with seekers of diverse inclinations. His talent for unraveling complex threads of crypto intricacies seamlessly blends with his editorial finesse, transmuting intricacy into an engaging tapestry of understanding.