Ethereum Price Faces Pressure: Bulls Tested After Setback

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As a seasoned crypto investor who has witnessed the rollercoaster ride of Ethereum since its inception, I can’t help but feel a sense of deja vu as I look at the current price action of ETH. The recent correction below $3,880 is reminiscent of the many times we’ve seen Ethereum dip only to bounce back stronger.

The Ethereum price has adjusted its growth slightly, dropping below the $3,880 region. Currently, Ethereum is trying to recoup some of its losses but is encountering obstacles as it approaches the resistance level at $3,800.

  • Ethereum started a downside correction below $3,880 and $3,800.
  • The price is trading below $3,880 and the 100-hourly Simple Moving Average.
  • There is a key bearish trend line forming with resistance at $3,815 on the hourly chart of ETH/USD (data feed via Kraken).
  • The pair could start a fresh increase if it stays above the $3,600 support zone.

Ethereum Price Dips Further

The price of Ethereum struggled to hold above the $4,000 threshold and subsequently began a slide in value similar to Bitcoin. Consequently, ETH dipped beneath the $3,880 and $3,800 support points, and at one point plunged below $3,600 as well.

Previously, a dip occurred at $3,488, but now the price is regaining some of those losses. It has managed to go beyond the $3,550 and $3,620 thresholds. Additionally, it exceeded the $3,700 mark and reached the halfway point (50%) of the Fibonacci retracement line, which is calculated from the peak at $4,017 to the trough at $3,488.

Currently, Ethereum’s trading price has dipped below the $3,880 mark and also falls beneath the 100-hour Simple Moving Average. If we look at potential upward movement, there appear to be obstacles around the $3,780 point. The initial significant resistance can be found near the $3,800 level.

As a researcher examining the ETH/USD pair, I’ve noticed an emerging bearish trend line that appears on the hourly chart. This trend line offers resistance at approximately $3,815. Notably, this trend line is approaching the 61.8% Fibonacci retracement level of the price drop from the $4,017 peak to the $3,488 trough.

Currently, a significant barrier is developing around the $3,880 mark. If we see a strong push past this hurdle at $3,880, it may propel the price towards another potential obstacle at $4,000. Overcoming the $4,000 resistance could potentially lead to further gains in upcoming trading sessions. Under these circumstances, Ether might advance toward the resistance zone of $4,050 or even reach as high as $4,120.

More Losses In ETH?

Should Ethereum not manage to surpass the $3,780 barrier, a potential drop might ensue. A initial floor may be found around the $3,620 mark. Meanwhile, a significant support level lies roughly at $3,560.

If the price falls significantly below the current support at $3,560, it could potentially drop to the next support at $3,480. Further losses may even lead to a fall towards the support level of $3,350 in the short term. The crucial support lies at $3,250 in the near future.

Technical Indicators

Hourly MACD – The MACD for ETH/USD is losing momentum in the bullish zone.

Hourly RSI – The RSI for ETH/USD is now below the 50 zone.

Major Support Level – $3,620

Major Resistance Level – $3,880

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2024-12-10 06:23