Ethereum’s price correction that began in early December is still ongoing, with the cryptocurrency currently trading below the $3,300 level. The price is heading towards a key support range between $2,400 and $2,840, and there is a possibility that the correction may end sooner than expected.
Key Resistance and Support Levels:
The trend for Ethereum remains bearish as long as it stays below the resistance zone between $3,370 and $3,613. A break below the $3,170 level could signal further downward movement. However, if Ethereum manages to break above the resistance area, it may indicate a potential larger pullback.
Alternative Scenario: Potential Upside Breakout
There is a possibility of Ethereum forming a triangular pattern in the current price action, which could lead to a breakout to the upside. While less likely, this scenario should be monitored as it could have positive implications for Ethereum’s price movement.
Looking Ahead: Possible Path to New Highs
Despite the short-term downtrend, the overall uptrend for Ethereum remains intact. If Ethereum finds support and stabilizes soon, it could set the stage for a stronger rally towards new all-time highs. Traders should keep an eye out for signs of a price bottom, as this could indicate the beginning of the next upward move.
In conclusion, Ethereum’s price correction is ongoing, with the cryptocurrency trading below key resistance levels. However, there is a possibility of a potential upside breakout, and if Ethereum finds support and stabilizes, it could pave the way for a rally towards new highs. Traders should monitor the price action closely for any signs of a trend reversal.