Ethereum Price Alert: A 5% Drop Sparks Concerns of Major Correction
The Ethereum price has recently experienced a sharp decline, shedding 5% amid a broader market pullback. This drop has raised apprehensions about a potential deeper correction in the near future. As Ethereum struggles to maintain stability above critical resistance levels, traders and investors are closely monitoring the market dynamics.
Ethereum Price Trends and Challenges
Initially, Ethereum attempted to hold its ground above the $3,500 mark but failed to sustain the momentum. The failure to stay above this level initiated a downward trend, similar to Bitcoin’s recent performance. The Ethereum price fell below $3,350, entering a short-term bearish zone, and even dipped beneath $3,250.
Currently, Ethereum is trading below $3,350 and the 100-hourly Simple Moving Average. Any recovery attempts may face resistance around the $3,300 level, which coincides with a key bearish trend line forming resistance at $3,500 on the hourly chart of ETH/USD.
Resistance and Support Levels
If Ethereum manages to stage a recovery, the primary resistance levels to watch are $3,350 and subsequently $3,500. A successful breach above these levels could potentially propel the price towards $3,650. A clear break in this region might signal further upward movement, possibly reaching the $3,800 resistance zone or even $3,880 in the coming days.
However, should Ethereum fail to surpass the $3,350 resistance, it could trigger another decline. The initial support on the downside is near $3,200, with the first major support zone around $3,150. A move below $3,150 could push the price towards the $3,050 support, with further declines potentially testing the $3,000 region. Additional support levels are identified at $2,880 and $2,850.
Technical Indicators and Market Outlook
The hourly MACD for ETH/USD is currently gaining momentum in the bearish zone, indicating potential further declines. Meanwhile, the hourly RSI is positioned below the 50 zone, reflecting the ongoing bearish sentiment in the market.
As Ethereum navigates these challenging market conditions, traders should remain vigilant and consider both resistance and support levels in their trading strategies. Understanding these dynamics can help in making informed decisions and mitigating potential risks associated with Ethereum’s price movement.
