Ethereum Price Confronts Barriers to a New Surge—Can Bulls Prevail?

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As a seasoned crypto investor with a knack for spotting trends and navigating market volatility, I’ve seen my fair share of ups and downs in the world of Ethereum. The current correction below the $3,150 zone is a familiar sight, but it doesn’t have to be a deal-breaker.

As an analyst, I’m observing a dip in Ethereum‘s price following a decline that took it below the $3,150 mark. At present, Ethereum seems to be stabilizing around $3,120, potentially preparing for another uptick.

  • Ethereum started a short-term downside correction below the $3,150 zone.
  • The price is trading below $3,200 and the 100-hourly Simple Moving Average.
  • There is a short-term contracting triangle forming with resistance at $3,120 on the hourly chart of ETH/USD (data feed via Kraken).
  • The pair could start a fresh increase if it remains stable above the $3,040 zone.

Ethereum Price Eyes Fresh Increase

The cost of Ethereum didn’t manage to initiate an upward surge beyond $3,250 and instead began a slide similar to Bitcoin. As a result, Ethereum dropped below the $3,150 and $3,120 support thresholds.

The bears managed to drive the price down below the $3,040 area, testing the strength of the $3,000 support level. A temporary low was created at $3,016 before the market stabilized. Now, the price is recovering and has moved above the 23.6% Fibonacci retracement line, which indicates a potential reversal from the downward trend that started at the $3,340 peak and bottomed out at $3,016.

Currently, the cost of Ethereum is below $3,200 and falls beneath its 100-hour Simple Moving Average. On the positive side, it appears that Ethereum might encounter barriers around the $3,120 mark. Additionally, a temporary triangle pattern is taking shape on the hourly ETH/USD chart, with $3,120 serving as its resistance level.

The primary obstacle for further price increase lies around the $3,180 mark or the point that represents 50% of the price drop from the peak at $3,340 to the trough at $3,016. A significant resistance is currently shaping up near $3,220.

If Ether manages to move beyond the $3,220 barrier, it may push further up towards the $3,450 resistance level in future trading sessions, potentially breaking through the current $3,320 resistance first.

Another Decline In ETH?

If Ethereum doesn’t manage to surpass the $3,320 barrier, there might be a fresh drop. A potential floor in this scenario could be around $3,060. The primary significant support lies roughly at the $3,040 region.

If the price dips significantly below $3,040, it could potentially fall to around $2,980. Further drops may drive the price towards the nearby support of $2,920. Notably, the significant support lies at $2,880 in the short term.

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 below the 50 zone.

Major Support Level – $3,040

Major Resistance Level – $3,120

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2024-11-18 06:40