Ethereum price recently experienced a downside correction from the $3,885 resistance zone. The price is now back below $3,800 and might continue to slide towards $3,720. This correction came after Ethereum failed to clear the $3,880 resistance level, signaling a potential shift in the market sentiment.
Technical indicators such as the 100-hourly Simple Moving Average and key bullish trend lines also point towards a bearish trend. The hourly MACD for ETH/USD is gaining momentum in the bearish zone, indicating a potential further decline in price. Additionally, the hourly RSI for ETH/USD is now below the 50 zone, reflecting a weakening bullish momentum.
If Ethereum manages to break above the $3,840 resistance level, it might face resistance near the $3,810 level, followed by a major resistance at $3,840. An upside break above $3,840 could signal a potential rally towards the $4,000 level. On the other hand, failure to clear the $3,720 support zone could lead to a further decline in price, with initial support near $3,765 and major support at $3,720.
In the near term, Ethereum’s price movement is likely to be influenced by market sentiment, technical indicators, and external factors such as regulatory developments and market volatility. A clear move below the $3,720 support level might push the price towards $3,650, with further losses potentially leading to a test of the $3,550 level.
Overall, Ethereum’s price volatility continues to be a significant factor impacting traders and investors in the cryptocurrency market. It is essential for market participants to closely monitor key resistance and support levels, technical indicators, and external factors to make informed trading decisions in this highly volatile market environment.