Ethereum (ETH), the world’s second-largest cryptocurrency by market capitalization, has encountered a hurdle in its recent price surge. After climbing above the $3,840 resistance zone, ETH struggled to breach the $3,885 barrier and has initiated a downward correction, mirroring Bitcoin’s recent pullback.
This correction has pushed the price below the key $3,840 support level and a critical bullish trend line that previously provided support around $3,830. The decline has also dipped below the 50% Fibonacci retracement level, a technical indicator used to identify potential support and resistance zones.
Will the Bulls Regroup?
The question on every crypto investor’s mind is whether this pullback signifies a more extended decline or merely a temporary setback. Analysts believe a return to upward momentum is still possible, but it hinges on ETH decisively closing above the $3,720 support level.
Potential Price Targets on the Horizon
If the bulls manage to regain control, they’ll likely face initial resistance around $3,810. A successful breakout above this level could pave the way for a climb towards the crucial $3,840 resistance zone. Overcoming this hurdle could propel ETH towards the much-anticipated $4,000 psychological barrier.
Further bullish strength could see ETH challenge the $4,080 resistance zone, potentially opening the door for a test of the $4,200 resistance level. Conversely, a failure to recapture the $3,840 resistance could exacerbate the downward trend.
Also Read: Can Spot ETFs Launch Ethereum To $22,000 By 2030? VanEck Makes A Bold Call On The DeFi Leader
Support Levels to Watch on the Downside
If the bears maintain control, the first line of defense for ETH will be the $3,765 support level. A breach of this point could trigger a decline towards the more substantial $3,750 support zone. The ultimate safety net rests at $3,720. A decisive break below this level could trigger a steeper fall towards $3,650, with potential losses extending to $3,550 in the near future.
The Coming Days Will Be Crucial
The coming days will be critical for determining the direction of Ethereum’s price movement. Whether the bulls can muster the strength to recapture lost ground or if the bears tighten their grip will significantly impact the short-term outlook for ETH.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
About The Author
