Ethereum’s price is seeing a decline after reaching the $4,080 zone. However, there is hope for a fresh increase as the cryptocurrency approaches a significant support level at $3,500, where bullish momentum may be reestablished.
Ethereum initiated a downside correction from the $3,080 level and is currently trading below $3,800 and the 100-hourly Simple Moving Average. On the hourly chart of ETH/USD, a bearish trend line with resistance at $3,850 is forming, indicating a potential obstacle for any upward movement. However, if the resistance at $3,850 is cleared, there is potential for the price to resume its increase.
Similar to Bitcoin, Ethereum failed to maintain its position above the $4,000 resistance zone and began a corrective phase. It dropped below the $3,920 and $3,850 support levels, leading to a short-term bearish trend. The cryptocurrency even briefly dipped below the $3,680 support zone before finding stability at $3,625.
Currently, Ethereum is consolidating its losses below the 100-hourly Simple Moving Average at $3,800. The immediate resistance lies near the $3,740 level, followed by the $3,850 level and the aforementioned bearish trend line. The next significant resistance stands at $3,880, and surpassing that may bring about bullish momentum, potentially propelling the price towards $4,000 and even $4,080. Further gains could lead to a test of $4,150.
If Ethereum fails to overcome the resistance at $3,850, it may continue its downward movement. Initial support is found near the $3,680 level, with major support likely at the $3,600 zone. A clear break below $3,500 could result in further losses, possibly leading to a test of the $3,350 level, and potentially as far down as $3,250.
Technical indicators show the MACD for ETH/USD gaining momentum in the bearish zone, while the RSI is below the 50 level, indicating a relatively negative sentiment.
It is important to note that this article should be regarded as educational and not as investment advice. Conduct thorough research and consider the risks before making any investment decisions.