Recently, Ethereum experienced a downside correction after failing to clear the $3,880 resistance level. This led to a drop in price below $3,840 and the 100-hourly Simple Moving Average. Additionally, a key bullish trend line with support near $3,830 was broken on the hourly chart of ETH/USD, indicating a bearish sentiment in the market.
As Ethereum continues its downward movement, it is crucial to look at the support and resistance levels. The $3,720 support level is the immediate target for the price, followed by the $3,765 and $3,750 zones. If the bearish momentum persists, a further decline towards $3,650 and even $3,550 could be possible in the near term.
On the flip side, if the bulls manage to push the price higher, Ethereum may face resistance near $3,810 and $3,840 levels. Breaking above the $3,840 resistance could lead to a potential rally towards $3,920 and even $4,000. Subsequently, breaching the $4,000 mark could open the doors for a test of the $4,080 and $4,200 resistance zones.
Looking at the technical indicators, the MACD for ETH/USD is currently signaling bearish momentum, while the RSI has dropped below the 50 zone. This suggests that the sellers are in control of the market sentiment, indicating a potential further downside movement for Ethereum’s price.
Ethereum’s price correction has seen a break below key support levels, signaling a bearish outlook in the short term. It is essential for traders and investors to monitor the support and resistance levels closely to gauge the potential direction of the price movement. As the market continues to react to external factors and news developments, staying informed and being prepared for various scenarios is crucial for navigating the volatile cryptocurrency landscape.
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