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03 October, 2024

Ethereum Price Under Pressure: Is the Bull Run Stalling?

03 October, 2024

Ethereum Price Under Pressure: Is the Bull Run Stalling?

Ethereum (ETH) has been on a roller coaster ride in recent days, with its price experiencing a significant decline below the $2,450 mark. This downward movement has left many investors wondering if the bullish momentum that propelled ETH to record highs is finally fading.

The recent drop has seen ETH consolidate below the $2,425 level, a key resistance point. This consolidation suggests that bears are currently in control, and ETH might struggle to recover its losses in the short term.

Key Technical Indicators

A closer look at the hourly chart of ETH/USD reveals a connecting bearish trend line forming with resistance at $2,425. This trend line acts as a strong barrier for ETH, preventing it from regaining its upward momentum.

The 100-hourly Simple Moving Average (SMA) is also serving as a resistance level, indicating that sellers are still in control. ETH is currently trading below this indicator, further highlighting the bearish bias.

On the downside, support sits near the $2,350 level. If ETH breaks below this support, it could trigger further selling pressure and push the price towards the $2,320 zone.

What’s Next for ETH?

The current market sentiment surrounding ETH is cautiously bearish. The price consolidation below the $2,425 resistance suggests that the bulls are struggling to regain control. However, if ETH manages to break above this resistance and clear the $2,500 level, it could signal a return to bullish momentum.

On the other hand, a failure to clear the $2,420 resistance could lead to further declines towards the $2,350 support level. Breaking below this level could trigger a significant sell-off, pushing ETH towards the $2,320 zone.

Investors should carefully monitor key technical indicators and market sentiment to gauge the potential direction of ETH in the coming days.

Technical Analysis

  • Hourly MACD: The MACD for ETH/USD is gaining momentum in the bearish zone, indicating that sellers are gaining strength.
  • Hourly RSI: The RSI for ETH/USD is now below the 50 zone, signaling oversold conditions.

Key Support and Resistance Levels

  • Major Support Level: $2,350
  • Major Resistance Level: $2,420

In conclusion, while ETH has shown signs of weakness, it remains too early to declare the bullish momentum dead. However, the price action suggests that the bears are currently in control. Investors should stay vigilant and monitor the key technical indicators and market sentiment to make informed trading decisions.