Ethereum Battles Bearish Trends: Aiming for $3,500 Amidst Market Volatility

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Sittings comfortably above the $3,000 threshold, Ethereum, the second most popular cryptocurrency after bitcoin, seems set to surge again following a minor downturn from the $3,150 mark. Economic analyses suggest that there is a strong possibility for the price of ETH to rebound from the $3,000 support and initiate another wave of growth.

In recent market activity, Ethereum was off to a strong start, unswerving in its progression until it hit a roadblock at the $3,150 zone, defended by bearish forces. Despite the downward correction initiated, Ethereum remains resilient, trading above $3,000 and the 100-hourly Simple Moving Average, a bellwether for its ongoing price stability.

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Technical analysis of the ETH/USD exchange rates on the hourly chart, facilitated through crypto data provider Kraken, reveals a worrisome phenomenon of a linking bearish trend line with resistance established at $3,080. Yet, pessimistic predictions of a further descent may only materialize if Ethereum fails to maintain a close above the $3,000 support.

In the previous week, Ethereum demonstrated dynamic price motions after solidifying its foothold in the $3,000 range, maintaining pace even with Bitcoin. In one such event, ETH soared past the $3,050 threshold before encountering bearish opposition at $3,150, subsequently forming a new weekly high at $3,144. Subsequent downside correction led to a downward dip, positioning itself below the $3,100 mark.

In the process, Ethereum’s value dipped under the 23.6% Fib retracement level, following an upward surge from a $2,927 swing low to the $3,144 high. Nevertheless, Ethereum now trades over the $3,000 mark and continues to be defended by bullish investors at the $3,065 support, all while conserving the 50% Fib retracement level from the same upswing.

Gloomy forecasts appear on the horizon with the next resistance estimated around the $3,080 mark, heightened by an amalgamating bearish trend line established at the same level across the hourly chart of ETH/USD. The first significant resistance consequential to this pattern is projected near the $3,150 mark, breaching which could potentially catapult Ethereum’s price to even higher levels.

Challenges lay ahead as the subsequent resistance is forecasted at $3,200, surpassing which could fuel the momentum required for Ethereum to reach towards a $3,250 high. A decisive leap above the $3,250 level could potentially propel the cryptocurrency into testing the waters of the $3,320 resistance, and perhaps even lead Ether towards the formidable $3,500 resistance territory.

However, if Ethereum contends with failure in breaching the $3,080 resistance and the extending trend line, it may be geared towards a downward trajectory. The initial support on such a decline is flaunted near the $3,065 level, followed by a more significant safety net positioned within the $3,000 area. A distinct plunge below the $3,000 support may force Ethereum’s price to retreat towards a $2,980 low, and further losses may even ensnare the cryptocurrency at the $2,860 level in the inevitable future.

Technical indicators signal a slowing of momentum in the bullish zone for the ETH/USD MACD on the hourly chart, as represented by the RSI figures which are now beneath the 50 level. Major challenges present themselves at the $3,000 support level and the $3,080 resistance mark.