Ethereum (ETH), the second-largest cryptocurrency, has been trading in a bearish wave, eroding gains over the past few trading sessions. Despite no negative news or rate cuts from the Federal Reserve, market leaders like Bitcoin (BTC) and Ethereum have struggled to gain momentum. Ethereum has seen lower lows and breached its crucial support level of $3500, with sellers likely pushing the price towards $3200. However, the coin has respected its trendline support region and remains neutral.
A falling wedge pattern, known for its bullish reversal, has been observed in Ethereum’s price chart. The completion of the 4th wave suggests that the retracement may be over, leading to a potential rebound. A break and close above the $3550 mark could trigger a sharp rebound, pushing the price towards $3800. At the time of writing, Ethereum was trading at $3371, with analysts suggesting a bullish view and anticipating a rebound towards the $3800 mark soon.
Although Ethereum’s Momentum Oscillator and MACD indicator reflect a bearish outlook, the chart structure remains positive. The price action indicates a retracement back to the 38.2% Fib zone, with the $3300 mark serving as a strong support level. Despite a decline in Active Addresses and transaction volume, the Futures Open Interest data reveals that buyers are accumulating and looking for a significant pullback to maintain the $3500 mark.
The immediate support levels for Ethereum are at $3300 and $3200, while key resistance levels are around $3440 and $3650. The bulls are likely to gain strength if they hold the $3300 mark, potentially leading to a retention of the $3500 mark. Overall, Ethereum’s price action suggests a consolidation phase with a potential upward trajectory in the near future.
It’s important to note that this article is for informational purposes only and does not provide financial or investment advice. Readers are advised to conduct their own research before making any financial decisions.
