The cryptocurrency market is witnessing Ethereum (ETH) attempting to carve a path of recovery in today’s trading session. The second-largest digital currency by market capitalization is currently trading at $3,311.02, with a 24-hour trading volume of $19,863,658,091. Despite a slight uptick of 0.46% in the last hours, Ethereum’s journey is fraught with significant resistance levels that could shape its short-term trajectory.
Ethereum recently faced a decline, breaking below the support zone of $3,420. However, it’s showing signs of consolidation as it strives to breach this level once again. Trading below the $3,400 mark and the 100-hourly Simple Moving Average, ETH needs to close above the current resistance to ignite a potential rally. The formation of a major bearish trend line with resistance near $3,320 on the hourly chart hints at the uptrend battle Ethereum faces.
Ethereum Faces Resistance at $3,400 Amidst Market Pressure
Ethereum is currently navigating through choppy market waters, recently experiencing a notable sell-off alongside Bitcoin. The immediate resistance is identified at $3,700, with a support threshold at $3,200. The intensified trading volume during the sell-off period suggests that the market sentiment is leaning towards bearish, prompting traders to consider short positions, eyeing the March 20 lows near $3,200 as a potential target.
Technical indicators on the daily chart show Ethereum struggling under the weight of resistance levels at $3,500 and $3,550. A decisive move above these could flip the bearish script, potentially signaling a trend reversal that may propel Ethereum to higher resistance levels at $3,680 and beyond. Such an uptrend could see Ethereum aiming for prices around $3,880, with a more optimistic ceiling at the $4,000 to $4,100 range.
Conversely, Ethereum’s first line of defense is at the $3,300 mark, a critical juncture that aligns with the 60% Fibonacci retracement level. A breach below this could exacerbate the bearish trend, dragging Ethereum towards the more substantial support at $3,200. If this level cannot hold, a further dip to $3,050, or even down to $2,880, might manifest, deepening the bearish outlook.
ETH is losing momentum steadily as its RSI (Relative Strength Index) is currently below the mid-line and the MACD (Moving Average Convergence Divergence) indicating continued bearish momentum. The RSI at 48.56 indicates a lack of momentum while the MACD histogram extends further into the negative region, supporting the possibility of an ongoing sell-off.
Ethereum (ETH) Outlook by Market Experts
Ethereum’s price action does not occur in isolation but aligns with broader cryptocurrency movements. As the market braces for the Bitcoin halving event, Ethereum, like Bitcoin, contends with heightened volatility and bearish pressure. The global economic landscape and regulatory discourse undoubtedly steer Ethereum’s market trend, alongside the entire cryptocurrency ecosystem.
#Ethereum dropping below $3,460 is a problem for the bulls! Given the lack of support, it increases the chances for a further $ETH correction toward $2,850 or lower. pic.twitter.com/dFpnpZtBVM
— Ali (@ali_charts) April 2, 2024
Ethereum’s recent plummet to lows of $3,205.65 mark to a low beneath the crucial $3,300 support has stirred concerns among both investors and market analysts, signaling a bearish phase that might not relent soon. Renowned analyst Ali Martinez suggests that Ethereum could descend as far as $2,850, supported by his observation that about 2 million Ether addresses have accumulated approximately 1.64 million ETH between the prices of $2,846 to $2,951, potentially setting up a significant support zone.
The current Fibonacci retracement levels on the daily chart underscore key supports between $3,193 and $3,298, which need to hold to avoid further downward momentum and the possibility of dipping below the psychologically critical $2,000 threshold.
