Ending last week’s trading a bit weak, Ethereum showed sign of strength today and continued to retrace. While facing a key resistance level, a strong rejection there could trigger a fresh downturn.
Ethereum’s bearish movement, which came in the form of a lower low and lower high pattern, remains valid in the short term. But the pressure has temporarily halted since the price recovered from a multi-month low two weeks ago.
On the daily chart, the bearish movement is now suspended as the price targets $2,900 for a retest but the $2,800 level is posing a threat. A push above it could bring us to the target price before resuming bearish.
A new impulsive move from there could set the stage for another drop capable of sliding the price below the $2k level. This should confirm a bearish continuation pattern. If ETH holds the previous low well, we may see a bounce back.
Considering a mid-term reversal, the second-largest crypto by market cap must retake its recent all-time high before validating a major bullish move. For now, the bears are still in control. While several top altcoins have posted minor losses today, Ethereum is defying the odds with a 3% surge since yesterday.
ETH’s Key Level To Watch
Source: Tradingview
The current surge is supported by $2,600. Dipping below this key level may cause serious havoc. However, the next support to watch would be $2,480 and $2,310. The $2,111 level is considered the last defense line for the bulls.
Looking ahead, Ethereum’s next target resistance is $2,920. If it pushes through this level to test $3,000, the next area of interest would be $3,213 and potentially $3,450.
Key Resistance Levels: $2,920, $3,213, $3,450
Key Support Levels: $2,600, $2,480, $2,310
- Spot Price: $2,655
- Trend: Bearish
- Volatility: High
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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