Just as I began writing the full article, Bitcoin did what it’s known for. A sudden drop below $69,000 caused Ethereum to also experience a rapid decline. Whereas Ethereum (ETH) price had been showing strong performance above the $3,550 level recently, promising hope to investors, this upward momentum is now compromised due to BTC‘s fall. So, what can be expected at this stage?
Ethereum Dips to $3,500
Ethereum had initiated an upward movement with strong momentum from the $3,500 support zone. Currently, the price is trading below the $3,550 level and the 100-hour Simple Moving Average. Notably, there is a resistance area around the $3,550 zone in the hourly chart of the ETH/USD pair.
For the recovery to continue, there is an important resistance zone to watch: the $3,600 level. If Ethereum manages to break through this resistance area, it could gain more momentum in its upward movement. However, bears are still active near the resistance levels of $3,650 and $3,680.
Upwardly, the immediate resistance is near the $3,630 level. Following that, critical resistance levels such as $3,650 and $3,680 should be monitored. In particular, surpassing the resistance level of $3,680 could mean a greater rise in momentum for Ethereum.
If Ethereum Fails to Break $3,600 Resistance
If Ethereum fails to overcome the $3,600 resistance, there are signs that a downward trend could restart. For now, the first support level on the downside is around $3,500. However, a more significant support is found near the $3,475 region. If this level is broken downwards, the next critical support point will be the $3,450 level. A move below this level could indicate that ETH is on a journey towards the $3,340 level.
According to technical indicators, the hourly MACD for ETH/USD is still in a bullish trend but is starting to lose momentum. The RSI is currently below the 50 level. This situation should not overlook the possibility of increased selling pressure. The key support level is set at $3,500, while the main resistance level is seen at $3,600.
Although the recent drop has disappointed Ethereum investors, as can be seen from the chart, Ethereum has already tested the levels below $3,500 several times recently. This situation could also lead to a swift recovery for the price.
