Ethereum’s recent price activity has injected volatility into the cryptocurrency market, catching the eye of investors. Following a test of the $3,040 mark, Ethereum began a corrective phase, drawing attention to its upcoming moves. Currently, Ethereum is testing a significant support level at $2,925, which could dictate its short-term trajectory.
What Are the Key Resistance Levels?
The recent bearish defense at $3,040 triggered a downward adjustment in Ethereum’s price. Trading below $2,960 has started to stir some market apprehension. The hourly chart for the ETH/USD pair reveals a downtrend line with resistance positioned at $2,965. This makes Ethereum’s immediate performance contingent on overcoming these resistance points.
Short-term targets for Ethereum include the $2,960 resistance and a primary barrier at $3,000. Breaching these could set Ethereum on a path to $3,050, potentially aiming for the $3,150 level. Conversely, a steady decline below the $2,925 support might suggest further downward movement.
Which Levels Could Ethereum Reach?
If Ethereum fails to surpass the $2,965 resistance, additional losses might be on the horizon. Should it continue to decline, the initial support to watch is around $2,925, followed by a critical level at $2,900. A break below these could result in Ethereum falling to $2,850, with potential declines extending to $2,740.
Investor Considerations
Investors may consider the following:
- A break above $2,965 could signal a further upward trend.
- A sustained fall below $2,925 might indicate additional selling pressure.
- Monitoring MACD and RSI indicators could provide insights into market sentiment.
Technical indicators currently reflect a bearish momentum. The four-hour MACD is losing its pace in the bearish zone, and the four-hour RSI stands below the 50 level, painting a less-than-optimistic picture for ETH/USD. The $2,925 support level remains pivotal; a breach could trigger further declines, whereas breaking the $2,965 resistance might restore some investor confidence.