Ethereum Price Analysis: Will ETH Fail to Clear $3400?
The recent surge in Ethereum’s price has allowed it to reclaim the range it traded within before the August drop. Following a rebound in July, the price struggled to break through the $3500 resistance level, leading to a significant decrease in bullish momentum. As a result, the price plummeted to around $2100, signaling a deep bearish trend. Interestingly, the current trade setup for ETH mirrors previous patterns, hinting at a potential repeat of past price actions.
The big question now is whether Ethereum will fail to surpass the $3400 mark. If so, could this trigger a further decline below $3000? In the short term, ETH seems poised for a pullback, especially as Bitcoin shows signs of retracement. Should Bitcoin dip below $88,000, Ethereum is likely to follow suit, potentially dropping to the 50-day Exponential Moving Average (EMA) around the psychological support level of $3000. The looming question remains: will Ethereum indeed test these levels?
The bears have been staunchly defending the $3400 barrier for the past few months, making it a crucial level to breach. With selling pressure on the rise, a pullback towards $3200 seems probable. However, the 50/200 day Moving Averages (MAs) are on track for a bullish crossover, known as a ‘Golden Cross’, which could signal a bullish trend reversal.
In the wake of the Death Cross in August, which led to a 35% price decline, the first Golden Cross of the year is anticipated to spark a strong bullish rally, pushing prices back towards yearly highs. With Ethereum showing resilience and holding steady around $3500, there are indications of a potential breakout to the upside.
As the cryptocurrency market continues to evolve, Ethereum’s price action remains a focal point for traders and investors alike. The upcoming days will reveal whether ETH can overcome the $3400 hurdle and pave the way for a sustained uptrend. Stay tuned for more updates on Ethereum’s price movements and market dynamics.