Ethereum’s price has recently experienced a significant downturn, slipping by more than 9% and currently trading below the $3,350 mark. Despite maintaining a bullish trend above a critical support zone, the price action is showing signs of weakness. The current range for Ethereum is between a 1-month high of $4,098.29 and a low of $3,103.37, indicating considerable volatility. As of now, the bulls are struggling to maintain control, and experts are now watching key levels to determine the next major move for Ethereum.
Ethereum’s Struggle with Resistance
The current price action shows Ethereum stuck near the 3-standard deviation resistance level at $3,620.49, presenting a significant barrier to further upward momentum. Additionally, the 3-10-16 day MACD moving average has stalled around $3,613.10, signaling indecision within the market. With these technical indicators pointing to a potential slowdown, the bullish momentum appears to be losing steam.
Ethereum’s failure to break above this resistance could prompt a shift in market sentiment. Analysts are suggesting that a break below $3,540 could indicate the end of the bullish trend, paving the way for a bearish scenario. In this case, Ethereum could face a significant correction, with support levels likely to form between $2,400 and $3,160. These levels will be crucial in determining whether Ethereum can recover or continue its downward trajectory.
Bearish Outlook: Support Levels and Potential for Further Decline
If Ethereum fails to hold above the support levels mentioned above, the bears could target the $2,400 zone, which would mark a notable dip from current prices. A move toward these levels could signal the start of a deeper correction, especially if the broader market sentiment remains negative. Ethereum would need to show resilience at these support zones to avoid a prolonged downturn.
Bullish Possibility: Can Ethereum Bounce Back?
On the other hand, if Ethereum can find support above $3,160 and continue to show signs of strength, there is still potential for a recovery. The bullish scenario would gain strength if Ethereum can break through its current resistance levels and push higher. In this case, Ethereum could potentially target the $4,000 mark once again, or even higher, as it seeks to reclaim its previous highs.
Analyst Josh from Crypto World highlighted a potential bullish pattern forming on Ethereum’s weekly chart—an inverse Head and Shoulders pattern. While this pattern is not yet confirmed, a break above the $4,000 to $4,100 range with a weekly close could set the stage for a major price surge. If confirmed, this pattern could propel Ethereum toward a target near $7,000, offering traders a significant opportunity for gains.
Ethereum’s Range-Bound Movement
Currently, Ethereum is trading within a range, with resistance sitting between $3,900 and $4,100. The price action is showing higher lows and higher highs, suggesting that, for the short term, Ethereum may be more bullish than bearish. The recent break above key resistance levels adds weight to the argument for a potential recovery.
What’s Next for Ethereum?
The next few days will be crucial for Ethereum as it faces the challenge of breaking through the $3,620 resistance or holding above its support levels. A failure to break above the resistance could see Ethereum’s price fall to the lower support zones, while a successful break could trigger a renewed bullish trend toward the $4,000+ range.
In conclusion, Ethereum’s future price action will largely depend on its ability to overcome the resistance at $3,620 and maintain support above key levels. Traders and investors alike will be closely watching these technical levels to gauge whether Ethereum can reclaim its bullish momentum or if the bears will take control, pushing the price toward the $2,400 zone.
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