Ethereum has recently experienced a downside correction below the $3,650 mark, breaking below the $3,500 support level. Currently, the price is attempting a recovery wave in the near term. This downward correction is in line with the overall market trend, similar to what Bitcoin has been experiencing.
Key Resistance Levels to Watch
There is a key bearish trend line forming with resistance at $3,660 on the hourly chart of ETH/USD, indicating a significant hurdle for Ethereum price. The immediate resistance is near the $3,650 level, followed by the $3,750 zone and the 50% Fib retracement level at $3,830. A breakthrough above these levels could potentially lead to a bullish momentum for the price, with targets at $3,925, $4,000, and even $4,080.
On the downside, initial support is seen near the $3,520 level, with the first major support at the $3,500 zone. Further down, the price could find support at $3,420, and a clear break below this level might push the price towards $3,350 and potentially $3,250. It is important to watch these support levels closely to gauge the strength of the current recovery wave.
The hourly MACD for ETH/USD is showing a loss of momentum in the bearish zone, indicating a weakening trend. Additionally, the hourly RSI is now below the 50 level, suggesting a potential continuation of the downside pressure on the price. These technical indicators provide valuable insights into the current state of Ethereum price and can help traders make informed decisions.
It is crucial to note that the information provided in this analysis is for educational purposes only and should not be considered as financial advice. Investing in cryptocurrencies carries inherent risks, and individuals are advised to conduct their own research before making any investment decisions. Always use caution and never invest more than you can afford to lose.
Ethereum price is currently in a recovery phase after a downside correction, with key resistance and support levels to watch. Technical indicators suggest a potential continuation of the bearish trend, highlighting the need for careful analysis and risk management in trading decisions. Stay informed, stay cautious, and trade responsibly in the volatile cryptocurrency market.