The cryptocurrency market has recently experienced a decline in Bitcoin‘s value, which has simultaneously caused a slump in Ethereum‘s price. Investors have shown signs of worry as Ethereum’s price dipped below the $3,650 mark. Despite the short-term worries, many remain optimistic about a potential rebound in the near future.
Technical Indicators Suggest Continued Pressure
From a technical standpoint, Ethereum’s fall below $3,700 has been a trigger for a corrective phase. The cryptocurrency’s decline below this threshold and the 100-hour Simple Moving Average (SMA) has signaled a possibility of sustained selling pressure. The ETH/USD pair showcases a prominent downward trend line on its hourly chart, signifying the strength of the current downtrend.
Despite the downward trend, there are indicators that suggest a possible recovery. Ethereum has shown resilience by climbing back above the $3,500 support level. However, to solidify the recovery, the currency must break through the resistance levels at $3,650 and $3,750.
Potential Recovery Hinges on Resistance Levels
Looking to the future, if Ethereum manages to overcome these obstacles, there’s a chance it could ascend toward the $3,925 mark, potentially leading to an advance toward the $4,000 resistance level. Conversely, failure to break past the $3,650 resistance may result in another price drop.
Technical indicators such as the MACD and RSI suggest that Ethereum is currently on a downward trajectory. With the RSI below 50 and the MACD losing momentum in the bearish zone, the trend appears to be strongly downward. The levels to watch are the $3,500 support and the $3,617 resistance, which will likely dictate Ethereum’s price direction in the near term.
As for the current state, Ethereum is hovering around $3,614. Its future price actions may be influenced by Bitcoin’s movements, although Ethereum has been known to deviate from Bitcoin’s trend at times. Nevertheless, Ethereum is striving to reach the $4,000 milestone soon.