Ethereum’s price has been on a downward trend lately, falling below the $3,800 support level. As it approaches $3,720, investors are left wondering if a fresh increase is on the horizon. The failure to maintain stability above $3,880 has contributed to this decline, with the price currently trading below both this level and the 100-hourly Simple Moving Average. A key bearish trend line at $3,800 is also creating resistance, indicating potential further downside if the $3,720 support is breached.
Similar to Bitcoin, Ethereum has experienced a correction below the $3,880 support zone, signaling a short-term bearish sentiment. The dip below $3,780 and subsequent move towards $3,720 has put the bears in control, with the 50% Fib retracement level acting as a key indicator of the downward movement. Despite trading above $3,800 and the 100-hourly Simple Moving Average, resistance at $3,800 and $3,840 could prevent any significant upward momentum. An upside break above $3,840 may pave the way for a move towards $3,900 and potentially even $4,000, but failure to clear these levels could result in further downside.
In the event of a continued decline, the $3,720 level is crucial, followed by the 76.4% Fib retracement level near $3,625. A breach of these levels could push the price towards $3,550 and even $3,500 in the near term. On the other hand, a successful breakthrough above $3,900 could signal a bullish reversal, potentially leading to a test of the $4,000 resistance zone.
The Hourly MACD for ETH/USD is already in the bearish zone, indicating a strong downward momentum. Meanwhile, the Hourly RSI has dipped below the 50 zone, further supporting the notion of a continued price correction.
Ethereum’s price is currently facing a critical juncture, with both support and resistance levels playing a crucial role in determining its future trajectory. Traders and investors alike must closely monitor the market trends and technical indicators to make informed decisions in this uncertain market environment.
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