Ethereum’s price is currently on a downtrend, as expected, with the market showing a consistent decline after breaking below a key trendline. This confirms that a correction is underway and could continue unless support levels hold. ETH is currently down by more than six percent and is trading slightly above the $3000 levels.
Ethereum’s Downtrend: Testing Key Support Areas
Currently, Ethereum is facing a pullback within what seems to be a larger ongoing uptrend. As the price moves deeper into the support zone, it may present buying opportunities. However, this could be the final chance for bulls to regain momentum before further downward pressure kicks in. If Ethereum’s price fails to hold at key support levels, further downside is expected, potentially leading other altcoins to follow Ethereum’s lead.
Critical Support Levels to Watch
Ethereum’s price is under pressure, with a key resistance level at $3,613. If the price remains below this level, further declines are likely. The next critical support levels to watch are around $2,920 and $2,840. These Fibonacci support areas could serve as potential reversal points, but unless the price shows clear signs of an upward shift, the downtrend is expected to persist.
Potential Early Reversal at Fibonacci Support
There is a chance that Ethereum’s correction could end earlier than anticipated. The Fibonacci extension at $2,840 is considered a potential point for the correction to conclude. However, if the downtrend lacks strong momentum or appears choppy, it may indicate that the correction will finish sooner than expected. An early turnaround would be beneficial for altcoins, possibly leading to a quicker recovery.
Market Behavior to Watch in the Coming Sessions
In the upcoming days, the price action will determine whether the current downtrend maintains its strength or if momentum starts to diminish. If Ethereum’s price shows signs of weakening, it could indicate that the correction is nearing its end, potentially allowing for a rebound. Altcoins are likely to follow suit in such a scenario.