Bitcoin’s decline below $63,000 continues to impact the price of Ethereum. Recently, Ethereum encountered resistance at $3,220 and started to correct the momentum it had gained. Currently, breaking through resistance levels at $3,055 and $3,080 could indicate a new upward movement.
Ethereum is currently experiencing a downtrend that has had a significant effect on its price. The price has dropped below $3,100 and is trading below the 100-hour Simple Moving Average. The hourly chart of ETH/USD shows a clear downtrend line, indicating resistance below $3,000.
In its current state, it is crucial for Ethereum to stay above the important support level of $3,000. However, the price has tested this support and pulled back to around $3,000. Currently, the price is consolidating around $3,005.
For an upward movement, ETH needs to overcome the resistance at $3,080. If Ethereum can surpass these resistance levels and establish a clear move above $3,200, it is expected to rise and test the resistance at $3,350. In this scenario, Ethereum could potentially progress towards the resistance zone at $3,500.
Recent price fluctuations raise the possibility of a downturn in Ethereum’s price. What could happen if Ethereum fails to surpass the resistance level at $3,055? Ethereum’s MACD is losing momentum in the bearish zone, indicating a potential corrective movement in the price. Similarly, the hourly RSI is below the 50 level, suggesting increased selling pressure.
Currently, Ethereum’s first support level is around $3,000. If this level is breached, the price is expected to fall to the area around $2,950. Consequently, the next critical support level at $2,920 emerges. If this support is broken, Ethereum’s price could drop to $2,840. In a more negative scenario, the price could decline further to $2,720.
However, it is also important to consider the resistance levels Ethereum faces during each downtrend. Currently, the main resistance level is set at $3,080. If the price can surpass this level, ETH could initiate a rise to higher levels.
Please note that the information provided in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should conduct their own research.
