Can Support Prevent Further Losses?

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The Ethereum price has recently begun a downside correction below the critical $3,250 zone. Currently, ETH is consolidating around the $3,000 mark and may be gearing up for a new upward surge. This article provides an extensive analysis of the current market trends and what to expect next for Ethereum.

Ethereum initiated a short-term downside correction below the $3,250 zone.

The price is trading above $3,200 and the 100-hourly Simple Moving Average (SMA).

A connecting bearish trend line is forming with resistance at $3,185 on the hourly chart of ETH/USD (data feed via Kraken).

The pair might embark on a fresh increase if it remains stable above the $3,000 zone.

Ethereum Price Hits Support

Ethereum’s price failed to sustain gains above the $3,450 zone, prompting a downside correction similar to Bitcoin’s movement. As a result, ETH dipped below the $3,320 and $3,250 support levels. The bearish momentum pushed the price even further down, breaching the $3,120 zone. It tested the $3,000 support zone, forming a low at $3,031, and is now in a phase of consolidating losses.

The market appears poised to soon test the 23.6% Fibonacci retracement level of the recent decline from the $3,340 swing high to the $3,031 low. Currently, Ethereum is trading below $3,200 and the 100-hourly SMA. On the upside, the price is facing significant resistance near the $3,120 level.

The first major resistance is identified near the $3,200 level. Additionally, a connecting bearish trend line is forming with resistance at $3,185 on the hourly ETH/USD chart. The main resistance is taking shape around $3,265, coinciding with the 76.4% Fibonacci retracement level of the recent drop from the $3,340 high to the $3,031 low.

Should the price decisively move above the $3,265 resistance, it could propel Ethereum towards the $3,320 resistance. A successful break above this level could pave the way for further gains in the upcoming sessions. In this scenario, Ether may advance toward the $3,450 resistance zone.

More Losses in ETH?

In the event that Ethereum fails to surpass the $3,200 resistance, it could continue its downward trajectory. The initial support on the downside lies near the $3,040 level, with the first major support located around the $3,000 zone. A clear breach below the $3,000 support could potentially drive the price down to $2,950.

If the bearish trend persists, additional declines could see the price heading towards the $2,880 support level in the short term. The next significant support level is positioned at $2,740.