Ethereum's Momentum Fades: Is a Deeper Correction on the Horizon?
Ethereum has recently entered a fresh decline, retracing gains after failing to breach significant resistance levels. The cryptocurrency's price action indicates a potential shift in momentum, with analysts closely monitoring key technical indicators and price zones that could dictate its immediate future.
Current Market Position and Key Resistance
After attempting to clear the $4,765 zone, Ethereum's price initiated a notable downturn, slipping below the $4,650 support. It is currently trading under $4,550 and has fallen beneath the 100-hourly Simple Moving Average. Technical analysis reveals a bearish trend line establishing resistance around $4,610 on the hourly chart. This weakness is further underscored by the Hourly MACD, which is showing a loss of bullish momentum, and the Hourly RSI, which has dropped below the 50-level, suggesting increasing selling pressure.
Potential Price Trajectories and Critical Levels
For Ethereum to reverse its current course and initiate a fresh upward movement, it must decisively settle above the $4,620 and $4,650 resistance levels. A clear break above these points could propel the price towards the $4,720 resistance and potentially higher, towards the $4,765 high or even the $4,800 mark. Conversely, should Ethereum fail to overcome the $4,620 resistance, a further decline appears likely. Initial downside support is anticipated near $4,500, with a critical major support level at $4,460, coinciding with the 61.8% Fibonacci retracement of its recent upward swing from $4,268 to $4,765. A breach below $4,460 could see the price drop towards $4,385 and potentially the $4,350 pivot level, with $4,270 serving as the next significant support.
