As a seasoned analyst with over two decades of experience in the financial markets, I have witnessed numerous market cycles and trends, making it easier to spot patterns and predict potential outcomes. The recent correction in Ethereum‘s price is not surprising given the rapid surge it experienced over the past few weeks.
Ethereum’s price has adjusted its growth after hitting the resistance at $4,080, currently trading beneath this level and displaying some bearish tendencies.
- Ethereum started a downside correction from the $4,093 high.
- The price is trading above $3,920 and the 100-hourly Simple Moving Average.
- There was a break below a key bullish trend line with support at $3,965 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could start a fresh increase if it stays above the $3,840 support zone.
Ethereum Price Corrects Some Gains
The cost of Ethereum stayed higher than the $3,750 support level, showing signs of stability. It then surged past $3,920 and outperformed Bitcoin, pushing its price beyond the $4,000 barrier set by resistance. This suggests a strong bullish trend for Ethereum.
Initially, the cost reached a barrier at $4,080 but couldn’t break through. A peak was established at $4,093, following which there was a drop in price. The value fell below both $4,050 and $4,000. Moreover, it sank beneath the 23.6% Fibonacci retracement level of the rally that began at the $3,680 low and peaked at $4,093.
Additionally, the Ethereum price dropped below a significant bullish trend line that previously offered support at approximately $3,965 on the hourly chart of ETH/USD. Currently, the Ethereum price is trading above $3,920 and also surpassing the 100-hour Simple Moving Average.
On a positive note, the price appears to be encountering obstacles around the $3,960 mark. The first significant barrier lies at approximately $3,980, with the primary one forming close to $4,000. Overcoming $4,000 could potentially push the price towards the next resistance level at $4,080.
If Ether manages to surge past the $4,080 barrier in the upcoming trading periods, it may indicate further increases. In this scenario, Ether could potentially reach the $4,150 resistance level or even aim higher at around $4,220.
More Losses In ETH?
If Ethereum doesn’t manage to surpass the $4,000 threshold, there’s a possibility it might initiate another drop. A potential initial floor can be found around $3,920. The primary significant support lies in the vicinity of the $3,880 region.
If the price falls significantly below the $3,880 resistance point, it could potentially drop to the nearby $3,840 support. Any further losses may cause the price to approach the $3,770 support level in the short term. The significant support level lies at $3,650.
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 – $3,920
Major Resistance Level – $3,980
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2024-12-09 06:22