Recently, Ethereum price took a hit as it extended its downside correction below the $3,800 support level. This decline was a result of failing to maintain above the $3,880 zone, leading to a breach of key support levels. As a result, ETH is now approaching the critical $3,720 support and may be gearing up for a potential rebound.
Analyzing the technical indicators for ETH/USD, we see that there is a key bearish trend line forming with resistance at $3,800 on the hourly chart. The MACD for ETH/USD is also gaining momentum in the bearish zone, indicating a strong selling pressure. Additionally, the RSI for ETH/USD has dropped below the 50 zone, further confirming the downward trend.
Looking ahead, if the price manages to break below the $3,720 support level, we could see further downside movement towards the $3,625 zone. A clear breach of this support area might push the price even lower towards $3,550 in the near term. However, if ETH is able to find support at the $3,720 level, we may see a potential reversal back towards the $3,800 resistance level.
In case of a bullish scenario, Ethereum price may face immediate resistance near the $3,800 level, followed by the $3,840 resistance. A break above $3,840 could pave the way for a rally towards the $3,900 and $3,940 levels respectively. Further bullish momentum could see Ether testing the $4,000 resistance level, with a potential upside towards $4,080.
Ethereum price has experienced a downside correction, but the direction from here remains uncertain. With key support and resistance levels in play, traders and investors will be closely monitoring the price action to determine the next potential move for ETH. The technical indicators suggest a bearish sentiment, but a strong rebound cannot be ruled out if Ethereum manages to hold above the $3,720 support level.
