Ethereum Price Correction: Navigating the $3,400 Support

Ethereum (ETH) experienced a price pullback, failing to break through the $3,750 resistance level. This retracement has brought the price back to around $3,350, raising questions about the immediate future of the market. Let’s delve into the technical analysis and explore potential scenarios.

The recent decline saw ETH break below key support levels, including the $3,675 support trend line and the $3,550 mark. This bearish momentum also pushed the price below the 100-hourly Simple Moving Average. The current price consolidation is occurring below the 23.6% Fibonacci retracement level of the recent swing high at $3,742 to the low at $3,356.

Resistance and Support Levels:

• Key Resistance: $3,450, $3,500, $3,550 (50% Fibonacci retracement)
• Key Support: $3,350, $3,320, $3,250, $3,150, $3,120

Technical Indicators:

• Hourly MACD: Showing bearish momentum.
• Hourly RSI: Currently below the 50 level, suggesting bearish sentiment.

Potential Scenarios:

Bullish Scenario: A decisive break above the $3,550 resistance could signal renewed upward momentum, potentially targeting the $3,650 and even $3,750 or $3,880 levels. This bullish movement would require strong buying pressure.

Bearish Scenario: Failure to reclaim the $3,450 resistance could trigger further downside, with initial support levels at $3,350 and then $3,320. A breakdown below $3,320 could escalate the sell-off, potentially pushing the price towards $3,250 or even $3,150.

Conclusion:

The current price action for Ethereum suggests a period of consolidation and uncertainty. While the possibility of further upside exists, the immediate outlook remains somewhat bearish. Traders should closely monitor the price action around the key support and resistance levels mentioned above to gauge the next likely direction of the market. This analysis is for informational purposes only and should not be considered financial advice.