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24 September, 2024

Ethereum Price Pullback: A Buying Opportunity?

24 September, 2024

Ethereum Price Correction: A Chance for Buyers to Load Up?

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Ethereum (ETH) surged past the $2,650 resistance level, showing strong bullish momentum. However, the price has since retraced, creating a potential buying opportunity for investors.

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ETH is currently trading above the $2,600 support level and the 100-hourly Simple Moving Average. A key bullish trend line has formed on the hourly chart, providing support at $2,600. This trend line aligns with the 50% Fibonacci retracement level of the recent upward move.

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Bullish Outlook

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If Ethereum can maintain its position above the $2,550 support, it could continue its upward trajectory. The next target for bulls is the $2,680 resistance level, followed by the $2,700 mark. Breaking through $2,700 could propel ETH towards the $2,780 resistance zone. Further gains could take the price towards the $2,840 or $2,880 levels.

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Bearish Scenarios

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Should ETH fail to break through the $2,650 resistance, a decline could ensue. The initial support lies at $2,615, followed by the $2,600 level and the bullish trend line. A break below $2,600 could push the price towards the $2,550 support level. Further downward pressure could lead to a drop towards the $2,525 support level, with the next key support at $2,450.

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Technical Indicators

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The hourly MACD for ETH/USD is gaining momentum in the bearish zone, indicating potential for further downward movement. The hourly RSI is below the 50 zone, suggesting oversold conditions.

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Key Levels

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  • Major Support Level: $2,600
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  • Major Resistance Level: $2,650
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Overall, the recent price action in Ethereum presents an interesting scenario. While the current correction might seem bearish, it also presents a potential buying opportunity for those looking to capitalize on ETH’s bullish potential. However, it’s crucial to monitor technical indicators and key support and resistance levels to make informed trading decisions.