Ethereum (ETH) has recently seen notable price fluctuations against the US Dollar (USD). As of press time, Ethereum is trading at $3,183.25, marking a 4% decline over the past 24 hours. This recent downturn highlights the ongoing volatility in the cryptocurrency market, influenced by various support and resistance levels observed over recent months.
As per Crypto Tony’s analysis, Ethereum experienced significant price swings between May and early August. The highest recorded price was approximately $3,620, while the lowest dipped around $2,731. Currently, two primary support levels are of particular interest.
The first support level at $3,105 has previously shown strong buying interest, acting as a crucial zone where the price has rebounded in the past. Additionally, the $2,825 level is another significant support, which could come into play if the price drops further.
On the resistance front, Ethereum faces a major barrier at $3,540. This level has consistently prevented the price from advancing higher, reflecting substantial selling pressure. Another notable resistance is at $3,380, where selling activity has also been significant. These resistance levels are critical as they could impact Ethereum’s ability to recover from its recent downtrend.
The recent price action indicates a downward trend from mid-July to early August. Ethereum struggled to break through the $3,540 resistance level, which led to a consistent decline. The price movements have been marked by significant volatility, with notable peaks and troughs contributing to the broader market uncertainty.
On a bullish note, if Ethereum can maintain its position above the $3,105 support level, it may experience a rebound towards the $3,540 resistance. A successful breakout above $3,540 could signal a new bullish trend, with the next target potentially reaching the $3,620 level.
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Conversely, if the $3,105 support level fails to hold, the price might test the lower support level at $2,825. A break below this could lead to a deeper downtrend, further impacting Ethereum’s price. Further analysis by CryptoPoseidonn, Fibonacci extension levels suggest potential future resistance points. The 1.272 Fibonacci level is around $4,400, while the 1.618 level is approximately $5,000. If Ethereum begins an upward movement, these levels could serve as future resistance.
