The value of Ethereum, the second most-popular cryptocurrency, has undergone a bearish correction after facing resistance at the formidable $3885 mark. Failing to secure a spot above this sum, the price slipped back, coming to rest sub-$3800 mark. The speculative drop leaves industry experts pondering if it may decline further, potentially reaching a low of $3720.
This downside correction resulted from Ethereum’s unsuccessful endeavour to clear the resistance level at $3880. As a result, it has descended below $3840 and failed to maintain its position above the 100-hourly Simple Moving Average, a critical market indicator.
During this downturn, Ethereum’s value actionable trend noted a break below a vital bullish trend line. This trend line was bolstered by support conceivably proximate to around $3830. The data feed as circulated through Kraken, it reflected this dip on the hourly chart of ETH/USD, adding to already volatile trends cryptocurrency markets are known for.
Some speculate this pullback is temporary, anticipating an upswing unless Ethereum slumps below its $3720 support point.
Ethereum’s value did find respite when it stretched above the $3840 resistance zone sometime previously. However, this surge was short-lived as it faltered on meeting the $3885 mark. The block-chain based platform then began portraying patterns eerily similar to Bitcoin’s recent downside correction.
Descent governed Ethereum’s movements soon after, the price plummeting below the $3840 mark. The coin also broke through a critical bullish trend line, this time secured by support hovering near $3830 as noted on the same hourly ETH/USD chart. Consequently, Ethereum found itself trading below both, $3840 and the 100-hourly Simple Moving Average. On a positive note, the bull operators have shown sparks of life at the near 61.8% Fib retracement level.
With yet another expected incline, Ethereum stands to face resistance near $3810. As the resistance stretches, it might encounter the real challenge at $3840. The odds of a bullish surge depend significantly on its ability to breach the famed $3840, potentially propelling it to further highs. A conclusive surpass here might land Ethereum in the green zone, the next resistance slated at $3920. Secure this, Ethereum might be well on its way to the $4000 mark.
Moreover, should the bull-rage take Ethereum past $4000, we could likely witness the price climb and try to test the $4080 mark. Continued gains on this upward trajectory could likely land it near the $4200 zone.
However, should Ethereum vie unsuccessfully against the $3840 resistance, a continued decline is potentially on the table. Supports along this projected slope are near $3765 and later $3750. The most significant support level lies at $3720, a clear drop beneath which might drive Ethereum down towards $3650. Any unrecovered losses may then further plummet Ethereum’s price closer to $3550.
Market indicators and technical tools hint at this ongoing uncertainty. The Moving Average Convergence Divergence (MACD) for Ethereum is gaining momentum in the bearish territory. In the same vein, the Relative Strength Index (RSI) for Ethereum measures below the neutral 50 mark zone.
In conclusion, this downward drift has rendered expert predictions tough but a bullish reversal remains on the table. The major battle for support and resistance lies at $3765 and $3840, providing timely indicators for investors to watch in the turbulent times ahead.
