The Ethereum price has recently experienced a downward correction, falling below the $3,650 support level. This correction has been attributed to the overall bearish trend in the cryptocurrency market, similar to Bitcoin’s decrease in value. However, Ethereum is currently showing signs of a recovery wave, with the price attempting to climb back above the $3,500 level.
Ethereum is currently trading below $3,700 and the 100-hourly Simple Moving Average. There is a significant bearish trend line forming with resistance at $3,660 on the hourly chart of ETH/USD. In order to resume its increase, Ethereum must clear the $3,750 resistance zone. The first major resistance level is near $3,650, followed by the $3,750 level and the 50% Fib retracement level at $3,830. Beyond this, the price may gain bullish momentum towards $3,925, $4,000, and potentially even $4,080. However, failing to clear the $3,650 resistance could lead to a fresh decline in price.
Initial support on the downside is near the $3,520 level, followed by the $3,500 zone. The next key support level could be around $3,420. A significant move below this support may push the price towards $3,350 and potentially $3,250. It is crucial for Ethereum to maintain the support levels in order to avoid further losses in the market.
Technical Indicators and Risks
The hourly MACD for ETH/USD is currently losing momentum in the bearish zone, indicating a potential continuation of the downward correction. Additionally, the hourly RSI is now below the 50 level, suggesting a bearish sentiment in the market. Investors and traders are advised to conduct their own research and analysis before making any investment decisions, as investing in cryptocurrencies carries inherent risks.
The recent Ethereum price correction has presented both challenges and opportunities for investors. While the market is currently experiencing a recovery wave, it is essential for Ethereum to surpass key resistance levels in order to sustain its bullish momentum. However, failing to do so could lead to further declines in price. As such, traders and investors must closely monitor the market trends and technical indicators to make informed decisions regarding their investments.
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