Ethereum‘s recent price fluctuations have created an exciting atmosphere in the cryptocurrency market. However, recent correction movements have caught investors‘ attention. After testing $3,040 recently, Ethereum started to correct its gains. Currently, it is testing the critical support at $2,925 and is being closely watched for future movements.
Ethereum Price Slips Southward
After the bears defended $3,040, a downward correction movement began in Ethereum’s price. Notably, the price trading below $2,960 has raised some concerns in the market. The hourly chart of the ETH/USD pair also highlights a downtrend line forming with resistance at $2,965. Therefore, Ethereum’s short-term performance seems dependent on overcoming these resistance levels.
In the short term, important levels for Ethereum include the $2,960 resistance and the main resistance at $3,000. If the price surpasses these resistance levels, the next target could be the $3,050 level. From this point, Ethereum is predicted to catch an upward trend towards the $3,150 levels. However, in a potential downside scenario, a sustained close below the $2,925 support level could indicate further price declines.
Downward Movement in ETH Could Bring $2,700 Into Focus
ETH may experience more losses if it fails to break the $2,965 resistance recently. If it cannot surpass the trend line, it may continue its downward movement. In this case, the first support point will be around $2,925. Subsequently, the $2,900 region gains importance. If the price falls below this support level, a clear decline may be observed, and the price could retreat towards $2,850. Worse still, the price has the potential to decline to $2,740 in the near term.
Looking at technical indicators, the four-hour MACD is losing momentum in the bearish zone for ETH/USD. Similarly, the four-hour RSI is currently below the 50 level. These indicators show that the current situation is not very bright.
The $2.925 support level stands out as a point to be closely monitored. If the price falls below this level, we may face more selling pressure. On the other hand, if the main resistance level at $2,965 can be broken, some hope may arise for ETH.
