Market Analysis: Ethereum’s Price Correction
In a significant market development, Ethereum (ETH) has encountered strong resistance at the $2,320 level, triggering a notable price correction. As previously anticipated, this key resistance zone has proven to be a crucial battleground for bulls and bears.
Technical Breakdown
The price action shows ETH initially gaining momentum above $2,120, but bears maintained control near the $2,320 resistance level. Key technical indicators reveal:
- Price trading below the 100-hourly Simple Moving Average
- Break below a critical rising channel at $2,220
- Formation of a local bottom at $2,103
- 23.6% Fibonacci retracement level cleared from $2,319 to $2,103
Support and Resistance Levels
Traders should monitor these critical price levels:
- Major Resistance Levels: $2,220, $2,320, $2,420
- Key Support Zones: $2,100, $2,050, $2,000
- Extended Support: $1,880, $1,740
Market Implications
The current price action suggests a critical juncture for Ethereum. A successful breach above $2,320 could trigger a rally toward $2,500, while failure to maintain support at $2,100 might lead to a deeper correction.
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Expert Analysis
According to crypto analyst Sarah Chen: “The current consolidation pattern suggests a decisive move is imminent. Traders should watch the $2,220 level closely as it could determine the short-term trend.”
Technical Indicators
MACD Analysis: The MACD indicator shows decreasing bullish momentum, suggesting potential for further downside.
RSI Status: Currently below 50, indicating bearish sentiment in the short term.
Looking Ahead
The next 24-48 hours will be crucial for Ethereum’s price action. Traders should maintain strict risk management and watch for potential breakout or breakdown scenarios at the identified support and resistance levels.
Source: NewsBTC