Ethereum Price Corrects Lower, Bulls Eyeing a Recovery
The price of Ethereum has experienced a downside correction after failing to break above the $4,000 resistance zone. Just like Bitcoin, Ethereum declined below key support levels and entered a short-term bearish zone. However, there is still hope for a recovery as long as the price clears the key resistance level at $3,850.
Key Support and Resistance Levels
- Support: $3,680, $3,600, $3,500, $3,350, $3,250
- Resistance: $3,740, $3,850, $3,880, $4,000, $4,080
Ethereum Price Analysis
The Ethereum price dipped below the crucial support levels of $3,920 and $3,850 and even reached as low as $3,625. However, it has since entered a consolidation phase and is currently trading below both the $3,800 level and the 100-hourly Simple Moving Average (SMA).
On the upside, there is immediate resistance near the $3,740 level or the 23.6% Fibonacci retracement level of the recent decline from the swing high of $4,083 to the swing low of $3,625.
If Ethereum manages to clear this initial resistance level at $3,740 and breaks above it convincingly, it could pave the way for a potential recovery. The next major resistance is located around the $3,850 level along with a bearish trend line that has formed on the hourly chart.
If ETH/USD successfully surpasses this key resistance zone at $3,850 and closes above it on an hourly basis, it could indicate a bullish momentum and a possible rally towards the $4,000 level. Further gains might even push the price towards the $4,080 resistance. If the buying pressure continues, a test of $4,150 cannot be ruled out.
Downside Risks
On the other hand, if Ethereum fails to clear the $3,850 resistance level and continues to move downwards, it could face additional losses. The first major support on the downside is near the $3,680 level.
If this support level fails to hold, the next key support zone is located around $3,600. A clear break below this level might push the price towards the $3,500 zone. Further losses could then send Ethereum towards the $3,350 level. The ultimate support lies at $3,250.
Technical Indicators
- Hourly MACD: The MACD for ETH/USD is currently gaining momentum in the bearish zone.
- Hourly RSI: The RSI for ETH/USD has dropped below the 50 level.
Hot Take: Ethereum Bulls Hopeful Amidst Downside Correction
The price of Ethereum has experienced a downside correction after failing to break above the crucial resistance level at $4,000. However, there is still hope for a recovery as long as Ethereum manages to clear the key resistance at $3,850.
Bulls are eyeing a potential rally towards the $4,000 and $4,080 resistance levels if ETH/USD successfully surpasses the immediate resistance at $3,740 and breaks above it convincingly. On the other hand, if Ethereum fails to clear the resistance and continues to decline, it could face additional losses with major support levels located at $3,680 and $3,600.
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