Overview of Ethereum Price Movement
Recently, Ethereum made an attempt to increase in value, breaching the $3,650 resistance zone. However, the bears quickly regained control, causing a drop in price. The cryptocurrency reached a high of $3,710 before the decline began. Currently, Ethereum is consolidating its losses and trading below $3,650, as well as the 100-hourly Simple Moving Average.
Resistance Levels and Potential Recovery
In case of a recovery attempt, Ethereum might encounter resistance near the 23.6% Fib retracement level of the recent downward move. The initial significant resistance level is at $3,640. Additionally, a bearish trend line has formed, presenting resistance around $3,680 on the hourly chart of ETH/USD. Breaking above this level could lead to a potential price increase.
- Key resistance: $3,680, $3,720, $3,750, $3,800, $3,880
Potential Downside Movement
Should Ethereum fail to surpass the $3,650 barrier, it may experience further decline. The first support on the downside is around $3,550, followed by a significant support zone near $3,520. The critical support level lies at $3,500, and breaking below this could lead to a drop towards $3,320 and potentially $3,250 in the short term.
Technical Indicators for Ethereum
- Hourly MACD – The MACD for ETH/USD is displaying increasing bearish momentum.
- Hourly RSI – The RSI for ETH/USD has dipped below the 50 level.
Key Price Levels
- Major Support Level: $3,550
- Major Resistance Level: $3,650
Hot Take: What’s Next for Ethereum?
As Ethereum continues to face resistance below $3,650, the potential for further downside remains. It is crucial for the cryptocurrency to surpass key resistance levels to signal a bullish trend. Traders are advised to closely monitor the price movements and key support levels to make informed decisions regarding their Ethereum holdings.
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