As of the latest market update, Ethereum price has continued its downside correction and is currently approaching the crucial $3,720 support level. This downward movement was initiated after ETH failed to sustain its position above the $3,880 zone, leading to a bearish trend in the short term. Despite trading below $3,880 and the 100-hourly Simple Moving Average, there is hope for a potential turnaround if the $3,720 support can hold strong.
A key bearish trend line has started to form with resistance at $3,800, as observed in the hourly chart of ETH/USD provided by Kraken. If the pair continues to move downwards and breaks below the $3,720 support, we may see further losses in the near term. However, Ethereum’s price is currently above $3,800 and the 100-hourly Simple Moving Average, signaling a possible reversal if a fresh increase occurs.
In case of an upside movement, ETH might encounter resistance around the $3,800 level, followed by major barriers at $3,840 and $3,900. Breaking above these resistance levels could pave the way for a surge towards $3,940 and even to the $4,000 mark. On the other hand, failure to surpass the $3,800 resistance level could lead to further downside, with initial support near $3,720 and the 76.4% Fib retracement level. If the downtrend persists, the next major support lies at the $3,625 zone, with the possibility of ETH falling towards $3,550.
Analyzing the technical indicators, the MACD for ETH/USD is currently gaining momentum in the bearish zone, while the hourly RSI shows a reading below the 50 level. These signals suggest a cautious approach to trading Ethereum at the moment, with the need to closely monitor key support and resistance levels for potential entry or exit points.
The recent price movement of Ethereum indicates a mixed outlook for traders and investors, with the need for careful risk management and strategic decision-making in response to market fluctuations. By staying informed and proactive, one can better navigate the volatility of the cryptocurrency market and potentially capitalize on emerging opportunities.