Ethereum Price Attempts a Comeback: Is a Rebound Imminent?

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As a seasoned crypto investor who has navigated through several market cycles, I have learned to stay calm and patient during these volatile times. The recent drop in Ethereum price below $3,450 is concerning, but it’s not uncommon in this rollercoaster ride we call the cryptocurrency market.

The cost of Ethereum continued to decline and fell beneath the $3,450 threshold. Currently, Ethereum is attempting to recoup some of its losses, potentially rising in value if it can surpass the resistance at $3,445.

  • Ethereum started a fresh decline below the $3,500 zone.
  • The price is trading below $3,450 and the 100-hourly Simple Moving Average.
  • There was a break above a connecting bearish trend line with resistance at $3,300 on the hourly chart of ETH/USD (data feed via Kraken).
  • The pair could start a decent increase if it clears the $3,450 and $3,500 resistance levels.

Ethereum Price Stays Above $3,200

The cost of Ethereum found it difficult to initiate an upward movement beyond the $3,500 mark and instead followed Bitcoin‘s downward trend. As a result, Ethereum showed signs of bearishness and dropped below the $3,400 level, trading under $3,320.

As a crypto investor, I’m observing a consolidation phase above the crucial support zones at around $3,220 and $3,200. A temporary low was established at $3,220, following which the price has been regrouping its losses. We’ve managed to break above the $3,250 level, and the price action has also surpassed the 50% Fibonacci retracement level of the recent downtrend from the $3,553 peak to the $3,220 trough.

On the hourly Ethereum-to-USD chart, there’s been a breach in the bearish trend line previously offering resistance at $3,300. Currently, Ethereum is being traded below $3,450 and also now lower than the 100-hour Simple Moving Average.

On a positive note, it appears that the price might encounter obstacles around the $3,445 mark. This point is close to the 61.8% Fibonacci retracement level, calculated from the downward swing between the high of $3,553 and the low of $3,220. The initial significant resistance can be found near the $3,480 point.

Currently, the primary obstacle is developing around $3,550. If we see a strong push past this barrier at $3,550, it may propel the price towards the next potential hurdle at $3,650. Overcoming this $3,650 barrier could lead to further gains in the upcoming trading periods. Under these circumstances, Ether might head toward the resistance zone of $3,720 or even reach $3,800.

Another Decline In ETH?

As a researcher studying the cryptocurrency market, if Ethereum doesn’t manage to surpass the $3,445 resistance, it might continue moving lower. A potential initial support can be found around the $3,300 mark. The first significant level of support appears to be situated near the $3,220 region.

If the price drops substantially below the $3,200 resistance point, it could potentially fall towards the $3,120 support. Any further losses could lead to a drop toward the $3,050 support in the short term. The most significant support level to watch out for is at $3,000.

Technical Indicators

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

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

Major Support Level – $3,220

Major Resistance Level – $3,445

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2024-12-24 06:22