Key Points:
- Ethereum’s initial recovery attempt faltered at $3,650, leading to another decline.
- Ethereum’s price fell below critical support levels at $3,600 and $3,550, hitting a low of $3,430.
- Key resistances at $3,570 and $3,650 are crucial for a potential bullish reversal.
Ethereum’s price experienced an initial recovery attempt but failed to generate bullish momentum. The key level to watch during this phase was $3,650. Unfortunately, Ethereum couldn’t hold above this level, leading to another decline in its value.
Ethereum Breaks $3,430 Support Amid Bearish Pressure.
Following the unsuccessful recovery attempt, Ethereum’s price continued to decline steadily. It broke below crucial support levels at $3,600 and $3,550, eventually forming a low near $3,430. Ethereum is trading below the $3,550 mark and the 100-hourly simple moving average, which signals ongoing bearish pressure. The inability to recover above these levels reinforces the downtrend and suggests further downside risks.
Minor Correction: Ethereum Reaches $3,480
Ethereum recently managed a minor correction, climbing above the $3,480 level. This brief recovery aligned with the 23.6% Fibonacci retracement level, from the $3,710 swing high to the $3,430 low. Despite this upward move, potential resistance looms at $3,550, making it critical to watch for further upward attempts.
Key Resistance Levels: $3,570 and $3,650
In the current bearish landscape, several major resistance levels are significant. The first notable resistance is at $3,570, corresponding with the 50% Fibonacci retracement level of the swing mentioned. Overcoming this resistance is crucial for any potential bullish reversal. A bearish trend line is evident, with resistance near the $3,650 mark. If Ethereum manages to break above this trend line, it could target the next significant resistance at $3,720, with a subsequent aim at $3,820.
Significant Events: Exchange Supply Low
Recent events have had a notable impact on Ethereum’s market dynamics. One significant event is the substantial decline in Ethereum’s supply on cryptocurrency exchanges, reaching its lowest level in seven years, as reported by Glassnode and highlighted by Lark Davis. This supply reduction can create a scarcity effect, influencing prices. Additionally, the U.S. SEC’s approval of Ethereum ETFs has opened the door for significant potential investments, mirroring the early success observed with Bitcoin ETFs.
Ethereum Price Drops 4.91% to $3,494.18
The market recently saw a sharp price drop for Ethereum, falling by 4.91% in the last 24 hours, with the current trading price around $3,494.18, as analysed by Spot On Chain. This decline was attributed to large purchases, which may have been conducted through over-the-counter (OTC) deals, thereby not directly impacting the market price. Given these conditions, a short-term expectation of a 7% correction remains plausible. The recent market correction, observed on Tuesday, points to a next support level at $3,302, which could be critical in determining the near-term direction of ETH’s price.
