Key Points
- Ethereum is Trading below $3,180, under the 100-hourly SMA, indicating a cautious market trend despite the formation of a rising channel with support at $3,140.
- Cryptocurrency faces key resistance at $3,180 and higher barriers at $3,200 and $3,240.
- Critical support at $3,125; if breached, may drop towards $3,075 and potentially $2,880.
Ethereum is trading below a significant threshold of $3,180, aligning itself beneath the 100-hourly Simple Moving Average—a technical indicator that often signals prevailing market trends. The price action has developed within a rising channel, indicating a tentative bullish sentiment, with the channel support pegged at around $3,140 on the hourly chart. Despite these bullish indicators, the overall trend suggests caution as the market assesses the strength of underlying support levels.
Ethereum Rebounds from $3,074 Low to Over $3,125
Recent trading sessions have seen Ethereum’s price experience a dip to a low of $3,074 before making a minor recovery above $3,125. This recovery faces several hurdles ahead. Immediate resistance is found at $3,180, coinciding with the 100-hourly SMA. Subsequent resistance levels are spaced at higher intervals. Firstly, $3,200 serves as a significant barrier. It represents the 61.8% Fibonacci retracement level from the recent drop. Next, additional important resistances follow at $3,240 and $3,280. If the momentum persists and breaches these levels, Ethereum’s next targets would be $3,350 and potentially $3,500, with $3,550 acting as a further resistance zone if the upward trend continues.
Ethereum’s Downside: Potential Drop to $2,750
On the downside, Ethereum’s immediate support lies at $3,125. If this level fails, the price might retreat to the first major support at $3,075. Firstly, a significant downturn could drive prices down to $3,030, a crucial point. Subsequently, if this level is breached, prices might decline to $2,880, with $2,750 serving as a potential lower boundary. These levels are pivotal, dictating short-term directional bias, and are crucial for traders monitoring potential buy or sell signals.
RSI and MACD: Bearish Sentiments Dominate
The Hourly MACD for Ethereum indicates reduced momentum in the bearish zone, suggesting sellers are gaining temporary dominance. Moreover, the Relative Strength Index (RSI) is below 50, underscoring a bearish sentiment dominating the recent price movements. These indicators are crucial for traders, offering insights into the current trend’s continuation or impending change.
Ethereum Trading: Watch $3,125 and $3,200 Levels
The critical levels to watch for Ethereum in the coming days include support at $3,125 and resistance at $3,200. How Ethereum interacts with these levels could define the market’s direction in the short term. Traders should monitor pivotal points and technical indicators to gauge potential entry and exit points in trading strategies.
