Recently, Ethereum has been facing a downward trend in its price, struggling to maintain above the $3,840 support level. The cryptocurrency has failed to show significant bullish momentum, with the price trading below both the $3,840 mark and the 100-hourly Simple Moving Average. This lack of bullish movement has raised concerns among investors and traders regarding the future trend of Ethereum.
Despite several attempts, Ethereum has failed to break above the $3,850 resistance zone. This failure to clear key resistance levels has resulted in a rejection pattern below the $3,800 mark, unlike its counterpart Bitcoin. The price also dipped below the $3,780 level, signaling a bearish trend in the market.
If Ethereum manages to see an increase in its price, it might face resistance near the $3,800 level, with the first major resistance sitting at $3,840. An upside break above this level could potentially send the price higher towards $3,900 or even the 76.4% Fib retracement level. However, failure to break the $3,840 resistance could lead to another decline in the price.
Analyzing the technical indicators, the MACD for ETH/USD is gaining momentum in the bearish zone, indicating a potential continuation of the downward trend. Additionally, the RSI for ETH/USD is now below the 50 zone, further supporting the notion of a bearish market sentiment.
Ethereum is currently facing a challenging time in terms of price movement, with key support and resistance levels playing a crucial role in determining its future trend. The failure to break above resistance levels could lead to further declines, potentially pushing the price towards lower support levels. Investors and traders need to closely monitor the market conditions and technical indicators to make informed decisions regarding their Ethereum holdings.
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