Cryptocurrency markets have been volatile lately, affecting the price of Ethereum as well. ETH has fallen below $3,500, widening its downward trend. There is a warning that this decline could continue down to the $3,200 support region, where a struggle between bears and bulls is expected.
Ethereum Initiates a Downward Correction
Ethereum has recently started a downward correction below the $3,550 region. Trading below $3,550 and the 100-hour Simple Moving Average indicates a strengthening downtrend. The significant downward trend line formed on the hourly charts suggests the decline could continue as long as it stays below the $3,520 resistance.
Ethereum’s price, similar to the correction in Bitcoin‘s price, has experienced a downward correction below the $3,720 and $3,650 levels. ETH has fallen below the $3,550 support level and is currently trading below $3,420.
Analysts indicate that Ethereum could make a rise towards the $3,650 level. However, a sustained move above this resistance could accelerate ETH’s rise towards the $3,825 resistance. Nevertheless, it should not be forgotten that a test of the $4,000 level might be necessary for further gains.
Critical Support and Resistance Levels for ETH
At present, the first support on the downside is around $3,300. However, the critical support point lies at the $3,270 region. If this level is broken, the next significant support is expected around $3,250. A clear decline below this level could pull ETH’s price down to $3,200 and even further losses could lead to a drop towards the $3,150 levels.
Technical indicators also seem to support this negative outlook. Particularly, the hourly MACD is gaining momentum in the bearish zone for ETH/USD. Similarly, the hourly RSI is currently trending below the 50 level, indicating increased selling pressure.
Of course, the key strategy for investors during these challenging times will be to closely monitor the market pulse and manage their risks appropriately. Currently, the main support level is identified as $3,200, while the main resistance level is around $3,520.
