The Ethereum price recently experienced a downside correction after failing to break the $3,880 resistance level. This correction led to the price dropping below $3,840 and the 100-hourly Simple Moving Average. Additionally, there was a significant break below a key bullish trend line with support near $3,830 on the hourly chart of ETH/USD. This trend reversal indicates that the bulls might be losing control in the short term.
Support and Resistance Levels
As the price of Ethereum continues to slide, it is crucial to identify potential support and resistance levels. The first major support level is near $3,765, followed by the $3,750 zone. The main support sits at $3,720, and a clear move below this level could push the price toward $3,650. Furthermore, if the downward trend persists, the price might even test the $3,550 level in the near term.
On the other hand, if there is a fresh upward move, the price of Ethereum might face resistance near the $3,810 level. The first major resistance level is at $3,840, with the possibility of an upside break sending the price higher. A breakthrough above the $3,840 resistance could pave the way for further gains toward the $4,000 level. This level is crucial as it might trigger a substantial uptrend, potentially leading to a test of the $4,080 resistance.
Technical Indicators
The hourly MACD for ETH/USD is currently gaining momentum in the bearish zone, indicating ongoing downward pressure on the price. Additionally, the hourly RSI for Ethereum is now below the 50 zone, suggesting a shift towards a more bearish sentiment in the market. These technical indicators highlight the challenges that Ethereum might face in the near future as it navigates through the current price levels.
Ethereum’s price correction and potential support levels indicate a critical juncture for the cryptocurrency. Traders and investors should closely monitor the support and resistance levels mentioned above, along with the evolving technical indicators, to make informed decisions regarding their positions in the market.