Ethereum has been experiencing some fluctuations in its price recently, moving within a key price channel and maintaining a bullish trend as it stays above an important support zone. However, the current price of Ethereum has seen a decline of over 9%, trading below $3,350 from its 1-month high of $4,098.29. The 1-month low for Ethereum stands at $3,103.37, indicating the range within which Ethereum has been fluctuating.
Experts have noted that a break below $3,540 could potentially signal the end of the bullish momentum, favoring a bearish scenario for Ethereum. In this case, a correction could be expected with support levels between $2,400 and $3,160. If these levels hold, there is a possibility for Ethereum to recover and move higher. On the other hand, if the price continues to rise, the bullish scenario could gain strength, potentially pushing Ethereum towards $4,000 or even higher.
Taking a closer look at the technical aspects, the price action is currently facing resistance near the 3-standard deviation level at $3,620.49, posing a significant barrier to further upward movement. Additionally, the 3-10-16 day MACD moving average has stalled around $3,613.10, suggesting a level of indecision in the market.
Analyst Josh from Crypto World has pointed out that Ethereum is currently showing signs of forming a potential bullish pattern known as an inverse Head and Shoulders on the weekly chart. However, this pattern has yet to be confirmed. To validate this pattern, Ethereum would need to break above the $4,000 to $4,100 range with a weekly close. If this occurs, it could set a price target near $7,000, presenting a significant trading opportunity.
In the short term, Ethereum is trading within a range with resistance levels between $3,900 and $4,100. According to the analyst, Ethereum appears more bullish than bearish at the moment, as it continues to make higher lows and higher highs, recently breaking above a key resistance level.
Overall, Ethereum’s price movements continue to be closely monitored by experts and investors alike, as the cryptocurrency navigates through various levels of support and resistance in the market.