April 25, 2024

Ethereum Snaps Off Major Support While Decline Is Not Quite Over

Ethereum was able to pull some bearish impetus in trade under the level of $3,100 against the US dollar. The price of Ethereum prolonged its drop, and it finally settled under the support area of $3,000.

The Extended Decline of Ethereum Price

The top digital coin continued to be in a bearish area under the level of $3,120. It snapped out of the major support area of $3,000 to advance deeper into the bearish area. Bearish traders even went as far as pushing the price lower than $2,980. A low point was created at close to $2,951, and the price is presently beginning to consolidate losses. In fact, Ethereum is trading lower than $3,050 with the simple moving average on an hour. But on the bright side of things, there is to be seen the first point of resistance close to the level of $2,990.

There is equally to be seen a connecting trend line of bearish movements coming together with some resistance close to the level of $2,990, as was seen on the chart for Ethereum and the US dollar. The major point of resistance after that is close to the level of $3,035. It is close to the 23.6% Fibonacci retracement point of the latest round of fall off from the $3,308 rise down to the low of $2,951.

It is possible that a close over the level of resistance at $3,035 might usher in a modest dispensation of recovery. The following key point of resistance after this might be close to the level of $3,130. The Fibonacci retracement point of 50%, which is the latest round of fall off from $3,308 high down to $2,951 low, is equally close to $3,130.

A decisive movement over the $3,130 point of resistance might significantly increase the possibility of a change in the current trend of things. In the case at hand, for example, the price might hit over the $3,150 area.

Are There More Losses in the Price of Ethereum?

If it happens that Ethereum does not start out in a wave of recovery higher than the level of $3,035, there is a possibility that it will continue to drop further lower. With that, the early support it can encounter on the downside is close to the $2,965 area.

The other significant support is close to the $2,950 area. If the price of Ethereum snaps under the $2,950 level of support, then it could just continue to decline.

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