Ethereum price has shown signs of recovery as it broke above the $3,120 zone. However, the bulls were unable to push the price past the $3,220 resistance level, resulting in a slight pullback. The price is now hovering below $3,120 and the 100-hourly Simple Moving Average, indicating possible consolidation in the short term.
Bearish Trend Reversal
A bearish trend reversal was observed when a major bullish trend line with support at $3,120 was breached on the hourly chart of ETH/USD. This break triggered a downside correction, leading to a dip below the $3,150 support level. The bears managed to push the price below $3,120, highlighting a shift in momentum in favor of the bears.
The hourly MACD for ETH/USD is losing momentum in the bullish zone, suggesting a weakening buying pressure. Additionally, the hourly RSI is now below the 50 level, indicating a potential increase in selling pressure. The immediate support level is near $3,025, followed by a major support zone around $3,000. The key support level stands at $2,950, and a clear move below this level could pave the way for further downside towards $2,820.
On the upside, if the bulls successfully push the price above $3,120, the next major resistance level is at $3,170, with a possible target of $3,220. A breakthrough above $3,220 could lead to a rally towards the $3,350 resistance, followed by a potential surge towards the $3,500 zone. However, failure to surpass the $3,120 resistance may result in another downward move, with initial support at $3,025 and further support at $3,000.
Forecast and Risk Disclaimer
While a bullish scenario could lead to substantial gains for Ethereum, it is essential to consider the inherent risks associated with cryptocurrency investments. The article aims to provide educational insights and should not be construed as financial advice. Investors are advised to conduct their research and assess all potential risks before making any investment decisions. The information provided is for informational purposes only, and any investment activities should be undertaken at one’s own risk.
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