Understanding Ethereum’s Price Movement
Ethereum recently surged towards $3,350 before encountering resistance from the bears, leading to a decline in its price. The cryptocurrency is currently trading below $3,220 and the 100-hourly Simple Moving Average. A breakdown below a crucial bullish trend line at $3,250 on the hourly chart indicates a bearish trend in ETH/USD.
Ethereum Price Correction
The Ethereum price initiated a strong uptrend above the $3,200 mark, outperforming Bitcoin and surpassing the $3,300 resistance level. Despite this rally, the bears stepped in near $3,350, causing a pullback. A peak was formed at $3,355, followed by a sharp decline below $3,300. The price also dropped below the 50% Fib retracement level from the recent low of $3,070 to the high of $3,355.
- A fresh decline in price after hitting a high at $3,355
- Sharp move below the $3,300 level
- Breakdown of the 50% Fib retracement level
Potential Support and Resistance Levels
Ethereum is currently below $3,220 and the 100-hourly Simple Moving Average. However, crucial support lies at $3,165 and the 61.8% Fib retracement level. Immediate resistance is expected near $3,210 and the 100-hourly SMA, with a major resistance at $3,250, followed by $3,350.
Exploring Further Downside Potential for ETH
Failure to breach the $3,210 resistance could result in further downward movement for Ethereum’s price. Initial support sits around the $3,180 level, with a major support zone near $3,165. A significant breakdown below $3,070 may lead to more losses, potentially pushing the price towards $3,030 and even $2,880 in the short term.
- Continued downside if resistance at $3,210 is not surpassed
- Main support at the $3,070 level
- Potential for further losses towards $2,880
Technical Analysis
The hourly MACD for ETH/USD is showing momentum in the bearish zone, indicating a potential downward trend. Additionally, the hourly Relative Strength Index (RSI) is now below the 50 level, pointing towards a bearish sentiment among traders.
Key Price Levels to Watch
Major support is seen at $3,165, while the primary resistance level is at $3,210. Further resistance levels include $3,250, $3,350, $3,465, $3,550, and $3,680. An upward breakthrough of these levels could pave the way for a bullish rally in Ethereum’s price.
Hot Take: Navigating Ethereum’s Price Action
As an investor in the crypto space, it is crucial to closely monitor Ethereum’s price movements and key support/resistance levels to make informed trading decisions. Keep an eye on the $3,210 resistance for a potential breakout or breakdown in the near term, signaling the future direction of ETH’s price.
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