Ethereum Price Falls 5%: Correction or Start of a Bigger Slide?

As a seasoned analyst with a knack for deciphering market trends, I must say that the recent plunge of Ethereum below the $3,800 mark is reminiscent of a rollercoaster ride. The downward momentum is evident, with the 100-hourly SMA acting as a formidable barrier.

The Ethereum price has noticeably dropped beyond the $3,880 threshold, causing a decrease of more than 5%. At this point, Ethereum appears to be exhibiting bearish tendencies as it hovers below the $3,680 mark.

  • Ethereum started a fresh decline below the $3,800 zone.
  • The price is trading below $3,680 and the 100-hourly Simple Moving Average.
  • There is a new connecting bearish trend line forming with resistance at $3,800 on the hourly chart of ETH/USD (data feed via Kraken).
  • The pair could continue to move down if it fails to stay above the $3,550 support zone.

Ethereum Price Dives Below $3,800

The price of Ethereum had difficulty holding above $3,880 and, similar to Bitcoin, it began a new drop. As the price of Ethereum fell below $3,800, it picked up bearish momentum and plunged beneath $3,680.

The value dropped beneath $3,600 and reached as low as $3,550 before leveling off. It hit a record low at $3,543, and currently, it’s holding steady while recovering from its losses. Additionally, a downward trend line is emerging on the hourly chart of ETH/USD, with a potential resistance point at $3,800.

Currently, the Ethereum price is trading below $3620 and is also lower than its 100-hour Simple Moving Average. If we look at potential resistance levels, Ethereum appears to encounter difficulties around $3670. This level is close to the 23.6% Fibonacci retracement point of the downward trend from the peak of $4105 to the trough of $3537.

Approaching the $3,800 mark or the halfway point (50%) of the pullback from the peak at $4,107 to the trough at $3,837, you’ll encounter significant resistance.

Currently, significant opposition is building up around the $3,880 region. If we observe a strong push beyond this resistance level, it may propel the price towards the next hurdle at $4,000. Overcoming this barrier could potentially lead to further growth in the upcoming trading periods. In such a scenario, Ether might advance toward the resistance zone of $4,150 or even reach as high as $4,220.

More Losses In ETH?

If Ethereum doesn’t manage to surpass the $3,680 barrier, it might keep falling. The initial support can be found around $3,550, and a significant support area is located near the $3,500 region.

If the price drops decisively below the $3,500 resistance, it could potentially fall towards the stronger $3,450 support. Further declines might lead to the $3,350 support becoming relevant in the short term. The significant support level is found at $3,220.

Technical Indicators

Hourly MACDThe MACD for ETH/USD is gaining momentum in the bearish zone.

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

Major Support Level – $3,550

Major Resistance Level – $3,680

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2024-12-19 06:22