Cryptocurrency markets have recently seen a decline in Bitcoin prices, which has been accompanied by a downturn in Ethereum prices as well. The correction movement below $3,650 has started to make investors nervous. The fact that Altcoin Ethereum has been trading below $3,500 for a while causes some short-term concern, yet hopes for a near-future recovery remain alive.
The Start of Ethereum’s Correction Phase
Technically speaking, the fall of altcoin Ethereum below the $3,700 level is considered the beginning of a correction phase. The price moving below $3,700 and the 100-hour Simple Moving Average indicates that selling pressure might continue. A distinct downward trend line on the hourly chart of the ETH/USD pair is particularly noticeable, which highlights the impact of the downtrend.
However, there are signs of a potential recovery in the market. The rebound after Ethereum dropped below the $3,500 support level is becoming evident as it starts to trade above this level. Yet, it is difficult to conclude the continuation of this recovery without first overcoming the significant resistance levels of $3,650 and $3,750.
Future Expectations for ETH
Looking ahead, Ethereum has the potential to rise towards the $3,925 level in the near term. Surpassing this level could create momentum towards the $4,000 resistance. However, if the current downtrend persists and the $3,650 resistance is not breached, the likelihood of Ethereum falling again is high.
According to technical indicators, altcoin Ethereum‘s MACD is losing momentum in the bearish zone, and its RSI is below the 50 level, indicating a strong downtrend.
The main support level to watch is $3,500, and the main resistance level is $3,617. Whether altcoin Ethereum trades above or below these levels will be a key factor shaping price movements in the short term.
Looking at the leader of altcoins, Ethereum, at the time of writing, we see it trading at $3,614. At this price level, Ethereum’s future movements may depend on Bitcoin‘s price action, although Ethereum sometimes diverges from Bitcoin. Ethereum will continue to strive to reach the $4,000 price tag in the upcoming period.
