Here’s the Critical Support for ETH Following a 14% Weekly Plunge (Ethereum Price Analysis)

After experiencing a 14% decline in value over the past week, Ethereum is now being supported by a critical level that could prevent further losses. Technical analysis shows that ETH has found support at the $3,000 mark, which is a level that has held up in previous market cycles. While the overall cryptocurrency market is currently experiencing a downturn, this support level suggests that ETH may be able to hold steady and potentially rebound in the near future. Investors and traders should closely monitor this critical level for further price action.

The cryptocurrency market has recently undergone a considerable correction, with most coins experiencing a decrease in value after a long period of consolidation without a clear direction. Ethereum, one of the industry’s prominent virtual assets, was no exception, experiencing a significant decline of approximately 14% that landed it in a crucial support zone.

When analyzing Ethereum’s technicals, it’s worth examining both the daily and 4-hour charts. The daily chart, for instance, reveals that Ethereum had previously exceeded its major price swing high at $2K due to its impulsive uptrend, which was seen as a bullish sentiment for the digital asset. However, the price quickly formed a head-and-shoulder reversal pattern and was rejected, causing a drastic 14% plummet.

Despite this, the price has now dropped to a crucial support region made up of the 50-day moving average of $1800 and the 100-day moving average of $1705, highlighting the significance of Ethereum’s current price action within the $1.7K-$1.8K range. A breakout from this critical support zone is likely to determine Ethereum’s future direction, and if it falls below this vital region, it may find support at its previous major swing low of $1.4K, serving as the main support zone for the cryptocurrency in the mid-term.

On the 4-hour chart, Ethereum’s price rally came to an end when it attempted to break out of the channel’s upper trendline at $2.1K, resulting in an impulsive decline that saw Ethereum’s price now reach the middle boundary of the channel, a significant support/resistance region, where it is currently struggling to move beyond. If Ethereum’s price falls below this level, it could signal a downtrend towards the $1.7K mark. However, if the cryptocurrency manages to find support and reverse the downtrend, a rally towards the upper threshold would be the most probable scenario for Ethereum in the short term.

As always, past performance is not indicative of future results, and given the volatile nature of cryptocurrency markets, it’s wise for investors to conduct their research and make informed investment decisions based on their risk tolerance and investment strategies.

Overall, the recent correction in the cryptocurrency market has impacted Ethereum’s price heavily. However, its current position within a critical support zone provides investors with the opportunity to monitor the coin’s price actions closely, making informed investment decisions, and potentially capitalizing on the coin’s future price movements.

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