Quick look:
- ethereum Price Drop: ethereum fell below the crucial $3,800 support, following bitcoin's downtrend.
- Bearish moment: Breaking the $3,800 support caused a drop below the 50% Fibonacci retracement, showing a loss of bullish momentum.
- Support levels:Temporary support emerged near $3,720, aligning with the 76.4% Fibonacci retracement.
ethereum's price trajectory has mirrored bitcoin's recent downtrend, with the digital asset sliding below the crucial $3,800 support zone. This drop has raised concerns among traders and investors, marking a significant change from the previous bullish momentum seen in the market.
Bears Take Control: ethereum Price Action
ethereum's decline began when it broke through the $3,800 support level, a key threshold that had previously held firm against downward pressure. The cryptocurrency price fell below the 50% Fibonacci retracement level of the upward move from the low of $3,631 to the high of $3,975, indicating a loss of bullish momentum. This pullback highlighted the vulnerability in ethereum's price action as it sank further into bearish territory.
However, bullish forces emerged near the $3,720 support zone. This level coincided with the 76.4% Fibonacci retracement of the aforementioned upward move, providing temporary respite for ethereum. Despite this, the price remained capped below the $3,800 mark and the 100 hourly simple moving average, indicating continued bearish pressure.
Potential Resistance and Support Levels
ethereum's path forward is littered with potential resistance points that could impede any bullish recovery. Immediate resistance is anticipated near the $3,800 level, with a newly formed downtrend line at $3,810 on the hourly chart of eth/USD representing a major barrier. If ethereum manages to break above these levels, it will face further resistance at $3,850, which, if broken, could push the price towards the $3,890 level.
A decisive break above $3,890 could inject new bullish energy into the market, lifting the price towards the $3,950 level. Success at this juncture could pave the way for a test of the psychological resistance of $4,000. Beyond this, sustained bullish momentum could target the $4,080 resistance zone, potentially reversing the recent downtrend.
On the other hand, if the $3,800 resistance is not broken, ethereum could continue its decline. Initial support is expected around the $3,720 level, a critical threshold that has recently sparked significant buying interest. If this support fails, ethereum could retest the $3,640 zone, and further declines could push the price down to $3,550. ethereum could face losses towards the $3,500 mark in a prolonged bearish scenario, marking a considerable pullback from its recent highs.
Key levels to watch: $3,800 resistance and $3,720 support
The recent price action in ethereum highlights the delicate balance between bullish and bearish forces in the cryptocurrency market. The bulls' ability to defend key support levels, particularly around $3,720 and $3,640, will be crucial in determining the near-term direction of ethereum price.
Traders should closely monitor the $3,800 resistance level as a breakout here could signal a change in market sentiment. On the contrary, if this level is not exceeded, the bearish outlook could be reinforced, which would cause further falls. The interaction between these resistance and support zones will likely dictate ethereum's price movement in the coming days.
While ethereum is currently grappling with short-term bearish pressure, key support levels have so far withstood major downward momentum. The bulls' ability to defend these levels and overcome critical resistance points will be essential in determining whether ethereum can regain its bullish trajectory or continue to face downward pressure. As always, traders must exercise caution and stay informed on market developments to effectively navigate this volatile landscape.
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