Ethereum Price Plunge: Is a Deeper Correction on the Horizon?
Ethereum (ETH) has recently experienced a significant price downturn, signaling a potential for a more profound correction. The digital asset has consistently traded below crucial support levels, with technical indicators suggesting a dominant bearish sentiment in the market. ETH's Recent Performance and Key Bearish Signals The price of Ethereum initiated a fresh decline after failing to sustain above the $4,550 zone, breaking below key levels at $4,350 and $4,220. ETH is currently trading beneath the $4,350 mark and its 100-hourly Simple Moving Average, indicating strong selling pressure. A significant bearish trend line has formed with resistance at $4,350 on the hourly chart. The market has already tested the $4,065 level, and is now consolidating losses below the 23.6% Fibonacci retracement of its recent high-to-low swing ($4,580 to $4,065). Critical Support and Resistance Levels On the downside, initial support is found near $4,065, with the next major support zone at $4,020. A clear break below $4,020 could accelerate ETH's decline, potentially pushing it towards $4,000, and further down to $3,850 or even $3,620 in the near term. Conversely, for a potential recovery, Ethereum faces immediate resistance near $4,185. The next significant resistance is around $4,320, which aligns with the 50% Fib retracement level. A sustained move above the $4,350 resistance level might indicate a shift in momentum, allowing the price to target $4,385, $4,500, or even $4,550.
Technical Indicators at a Glance
- Hourly MACD: Gaining momentum within the bearish zone.
- Hourly RSI: Trading below the 50 zone, reinforcing the current bearish outlook.
- Major Support Level: $4,020
- Major Resistance Level: $4,350
