As a seasoned researcher who has witnessed the cryptocurrency market’s wild swings, I can confidently say that Ethereum‘s latest performance is not surprising. The failure to hold above the $4,000 zone and the subsequent correction are part of the rollercoaster ride that is this market.
The Ethereum price didn’t manage to rise above the $4,000 mark and has since started to drop. Ethereum may find it difficult to maintain its position above the $3,820 support level.
- Ethereum started a downside correction from the $4,100 zone.
- The price is trading below $3,980 and the 100-hourly Simple Moving Average.
- There was a break below a key bullish trend line with support at $3,940 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 $2,820 support zone.
Ethereum Price Fails Again
The price of Ethereum found it challenging to remain above the $4,000 mark and lagged behind Bitcoin‘s performance. Initially, Ethereum began a new downward trend and fell below its $4,000 support level.
Below the $3,980 and $3,940 resistance levels, there was a significant drop in ETH/USD, breaking a crucial bullish trend line at $3,940 on the hourly chart. The pair fell even lower to dip below $3,850, reaching a low of $3,837. Currently, the price is stabilizing, working off its losses.
Currently, Ethereum’s price is lower than $3,920 and its 100-hour Simple Moving Average. As it attempts to rise, it appears to encounter obstacles around the $3,900 mark. This level is also close to the 23.6% Fibonacci retracement level of the decline from the peak of $4,107 to the low of $3,837.
Approaching the $3,970 mark or the halfway point (50%) of the price drop from the peak of $4,107 to the trough of $3,837 presents a significant barrier in the current trend.
The main resistance is now forming near $4,000. A clear move above the $4,000 resistance might send the price toward the $4,120 resistance. An upside break above the $4,120 resistance might call for more gains in the coming sessions. In the stated case, Ether could rise toward the $4,250 resistance zone or even $4,320.
More Losses In ETH?
Should Ethereum not manage to break past the $3,900 barrier, it might keep dropping instead. A potential initial floor can be found around $3,820. The primary significant support lies approximately at the $3,780 region.
If the price falls significantly below the $3,780 resistance point, it could slide down to the $3,650 support. Further declines may cause the price to approach the $3,550 support in the short term. The critical support level lies at $3,500 for now.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is gaining momentum in the bearish zone.
Hourly RSI – The RSI for ETH/USD is now below the 50 zone.
Major Support Level – $3,820
Major Resistance Level – $3,970
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2024-12-18 06:22