The surge in cryptocurrencies has impacted Ethereum as well, as ETH surpassed the $3,200 resistance level in its recent rally. However, a pullback followed shortly after. At the time of writing, Ethereum was trading at $3,060, indicating a potential approach towards critical support. What are the key levels to keep an eye on for ETH today?
Critical Obstacles in Ethereum’s Price
Prior to the emergence of bearish sentiment, Ethereum managed to surpass the $3,150 and $3,200 levels. However, the price later dipped below $3,120, leading investors to anticipate further downside potential.
Ethereum’s price climbed above the $3,150 and $3,200 levels, testing the $3,220 resistance zone. Nevertheless, the peak was reached at $3,217, triggering a downward correction. This correction continued as the price dropped below $3,150, breaking the $3,120 support level. Upon analyzing the hourly chart, it is evident that the major bullish trend line at the $3,120 support was breached. This increased bearish control and pushed the price to lower levels.
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Currently, the immediate resistance level for Ethereum stands at $3,050. However, if bulls regain control and manage to push the price above $3,220, further gains could be expected, potentially driving Ethereum towards the $3,500 resistance area.
Declines for Ethereum Could Result in Prices Below $3,000
In the altcoin realm, if Ethereum fails to surpass the $3,120 resistance level, it could lead to another downtrend. Presently, the initial support in the ETH/USD pair is around $3,025. However, a break below this level could trigger further downward movement.
Of particular significance is the main support area at $2,950. If this crucial support is breached, it is likely that the price will drop towards $2,820. In this scenario, additional losses could potentially push ETH down to $2,650 in the short term.
Technical indicators also lend support to this potential downward trend. The hourly MACD metric is losing momentum within the bullish zone for ETH/USD. Similarly, the hourly RSI (Relative Strength Index) currently sits below the 50 level, indicating increased selling pressure.
Disclaimer:
The information provided in this article should not be considered as investment advice. Investors need to be aware that cryptocurrencies are highly volatile and carry inherent risks. It is recommended to conduct thorough research before making any investment decisions.
