Cryptocurrency market volatility has had a significant impact on the value of Ethereum, which is now testing the critical support level of $2,940. This development is a cause for concern among investors, who are closely monitoring the future levels for ETH.
Ethereum has dropped below the $3,000 mark as it follows a downward trend. This decline can be attributed to losses in Bitcoin and other cryptocurrencies, which have also affected Ethereum’s trading performance. The pressure of overall market uncertainty is evident in Ethereum’s inability to surpass the $3,050 mark and the 100-hour Simple Moving Average.
Analyzing the hourly chart of the ETH/USD pair, it is clear that Ethereum is currently facing a challenging process as it struggles to reach desired levels. The major resistance levels are at $3,010 and $3,030. Surpassing the latter could potentially create positive momentum for Ethereum and drive its price upward.
However, if Ethereum fails to overcome the $3,030 resistance, it may enter a downward trend. The first support level in this scenario would be around $2,965, followed by a potential retreat to the $2,940 region. Ethereum’s next support level is set at $2,880, and a fall below this level could indicate a clear downward trend, possibly leading to a pullback to the $2,720 levels. In the worst-case scenario, Ethereum could plummet to the $2,650 levels in the near term.
Technical analyses support these concerns, as Ethereum’s MACD indicator shows a loss of momentum in the bearish zone, and the RSI indicator is trending below the 50 level. These indicators paint a bleak picture of Ethereum’s current situation.
So, what should investors do? It is crucial for investors to closely monitor the main support level of $2,940. If Ethereum falls below this level, further price declines could occur. Additionally, investors should pay attention to the main resistance level of $3,030, as surpassing this level could signal a potential rise in price.
It is important to note that the information in this article does not constitute investment advice. Investors should be aware of the high volatility and risk associated with cryptocurrencies and conduct their own research.