Ethereum (ETH) has experienced a breach of a crucial support trendline on a 30-minute timeframe signaling a potential bearish momentum in the near term as highlighted by Crypto Patel, an analyst. The breach of the trendline, previously a stronghold of support, now turned resistance, underscores the evolving market sentiment from bullish to bearish. The breach, indicated by the recent price rejection, hints at a possible continuation of the downward trajectory.
Immediate support levels stand crucial in determining the short-term price action of Ethereum (ETH) against USDT. With the current immediate support resting around $3,600, failure to hold this level could pave the way for further downside movements. Should the price decline persist, secondary support at $3,520 and major support at $3,400 may come into play, acting as significant barriers against further depreciation.
Conversely, resistance levels pose formidable challenges for bullish momentum. The breached trendline, now serving as immediate resistance at $3,700, necessitates a decisive breakthrough for any bullish recovery attempts. Beyond this level, secondary resistance at $3,800 and major resistance at $4,000 present formidable hurdles, requiring substantial buying pressure to overcome.
A shift in focus to the daily timeframe against USD reveals a contrasting outlook, hinting at potential bullish opportunities. The presence of a potential “W” pattern, indicative of a double bottom formation, suggests a favorable scenario.
According to analysis by Crypto Tony, a top analyst, if Ethereum (ETH) manages to find support around $3,500 and initiates a bounce, it could mark the beginning of a bullish trend. Such a scenario could mark the commencement of the second leg of the “W” pattern, targeting higher price levels.
Incorporating MACD and RSI analysis further supplements the assessment of Ethereum’s (ETH) price action. A bullish crossover on the MACD would substantiate the potential uptrend indicated by the “W” pattern, while an RSI above 50, ideally above 70, would affirm strong bullish momentum. Currently, Ethereum’s live price is $3,698, with a 24-hour trading volume of $47,597,334,486, down 6% in the last 24 hours.
