In an intriguing turn of events, the cryptocurrency market has entered a period of retracement, as Bitcoin’s meteoric rise to a new all-time high welcomes an apparent season of correction. Simultaneously, Ethereum (ETH), known as the second-largest cryptocurrency, is caught in the fray of this downward trend.
Following an impressive yearly high of $4,094, Ethereum’s price began a downward journey. Repercussions of this slump saw it plunge below the 100-day Moving Average (MA) in both the 1-hour and 4-hour timeframes. However, on the daily timeframe, this phenomenon remains unseen.
The one-million-dollar question echoing in the market is whether Ethereum’s price will persist in its descent or surprise the market with a swift shift in its trajectory. At the moment this was written, Ethereum made a modest ascent of 0.64% in the previous 24 hours, with the price dancing around $3,360.
The technological indicators of Ethereum offer a fascinating perspective. According to the chart, a support level of $3,067 together with resistance levels of $3,681 and $3,591 have managed to make their presence felt. Yet, considering the dynamic volatility of the cryptocurrency market, the probability of additional support and resistance levels arriving on the scene as the price continues to fluctuate cannot be dismissed.
A meticulous evaluation of the 4-Hour Moving Average reveals that the price is progressing beneath the 100-day moving average. This alludes to a possible extension of Ethereum’s downward trend. Further compounding this bearish notion is the Relative Strength Index (RSI) indicator, whose signal line noticeably hovers below the 50 line.
Adding fuel to the fire, an examination of the MACD indicator, particularly in the 4-hour timeframe, verifies that the MACD histogram has positioned itself below the zero-hour line, with the MACD line and signal line also similarly crossing below. This particular setup further underlines the bearish status, indicating that the price might delve even further.
A detailed analysis paints two potential outcomes for Ethereum. Should the price continue its downward drift and puncture the support level of $3,067, Ethereum might find itself in a new support level further south.
However, Ethereum possesses the potential to defy gravity and reverse its plunge. Should its price remain robust at the current support level, the cryptocurrency could surprise the market with a resurgence and sprint upwards. In such a scenario, the possibility of Ethereum circumventing the resistance levels of $3,681 and $3,591, and proceeding with its bullish march cannot be ruled out.
Please note that the information conveyed in this article is furnished purely for educational objectives. It bears no reflection on the stance of NewsBTC regarding any buying, selling, or holding of investments. As the world of investment inherently carries risk, we strongly advise conducting your research before making any investment decisions. Thus, any utilization of the data revealed in this article remains wholly at your discretion.
