The sudden downturn has caused the market to take a step back and reassess the current state of the cryptocurrency. Despite this setback, the overall trend of the month has been positive, indicating that Ethereum may be poised for further gains in the near future.
that the bulls have been losing steam since reaching a peak of approximately $1,660. This indicates that the market is beginning to cool off, and investors should be aware of the potential for a downward trend in the near future.
Ethereum has initiated another bearish correction below $1,600 against the US Dollar. ETH is currently trading above $1,550, however, it may encounter resistance near $1,600. Ethereum's price has made a second attempt to breach the $1,660 resistance zone.
However, Ethereum's attempt to break the $1,660 resistance was met with a downside correction, similar to Bitcoin. The $1,640 and $1,620 support levels were breached, and a major bullish trend line with support at $1,575 on the hourly chart of ETH/USD was broken. The pair even plummeted to as low as $1,530, indicating a significant bearish shift in the market.
Ethereum's price is consolidating above the $1,500 level against the US Dollar, with a minor recovery wave pushing it above the 23.6% Fib retracement level of the downward move from the $1,660 swing high to $1,535 low. Currently, Ethereum is trading below $1,600 and the 50 hourly simple moving average. Additionally, a major contracting triangle is forming with support near $1,540 on the 4-hours chart, indicating that the bulls are attempting to gain control of the market.
The four hour chart analysis of Ethereum's price reveals that the bears have seized control of the market after a period of consolidation. ETH has dropped below all its major daily moving averages and is currently trading beneath the $1,600 key support level, indicating a bearish trend. This could be a sign of further losses in the near future, so traders should be cautious when making their next move.
An immediate resistance is near the $1,585 level, followed by the next major resistance at the $1,600 level and the 100-hour simple moving average. This is also close to the 50% Fibonacci retracement level of the downward move from the $1,660 swing high to the $1,535 low. A successful break above the $1,600 resistance zone could trigger a significant increase in price, potentially pushing Ether towards the $1,660 resistance. Further gains could then send Ether towards the $1,720 level.
If Ethereum fails to break through the $1,600 resistance, it could continue to decline. An initial support level is near the $1,550 mark, with the next major support level at $1,500. If the price drops below $1,500, it could potentially plummet to the $1,450 support. Further losses could lead to a retest of the $1,320 zone in the near future.
According to price analysis, the market capitalization of Ethereum is estimated to be around $192,515,242,713. Its 24-hour trading volume is approximately $8,824,747,673, indicating a 2.09% decrease in market capitalization and a 3.41% increase in transaction volume during intraday trading.
KEY LEVELS :
RESISTANCE LEVEL : $1,600-$1,640
SUPPORT LEVEL : $1,540-$1,500
Ethereum's price has hinted at a potential correction, prompting the question: should you buy the dip? The next move will be determined after the Federal Open Market Committee (FOMC) releases its outcomes. Share your thoughts and insights in the box below.
