‘Ethereum price prepares for next move as risk of bounce grows.’
'Ethereum price prepares for next move as risk of bounce grows.'
The Blockchain Industry: An Overview
The blockchain industry has revolutionized the way we transact and store data. With the advent of blockchain technology, cryptocurrencies like Ethereum (ETH) have gained popularity and disrupted traditional financial systems. In this article, we will explore the current state of the blockchain industry and delve into the recent price movements of Ethereum.
Ethereum’s Price Correction
Ethereum experienced a downside correction after failing to sustain its position above $2,000 against the US Dollar. The price retraced to test the $1,900 support level, trading below $1,950 and the 100-hourly Simple Moving Average. This correction has prompted speculation about the future direction of Ethereum’s price.
Analyzing the hourly chart of ETH/USD, we can observe a key bearish trend line forming with resistance near $1,930. This indicates a potential obstacle for the price to resume its rally. The price is currently consolidating losses near the 23.6% Fibonacci retracement level of the downward move from the swing high of $2,027 to the low of $1,900.
Potential for a Fresh Rally
Despite the recent correction, there is still a possibility for Ethereum to restart its rally. The immediate resistance lies around the $1,930 level, followed by a major resistance zone near $1,950. If the price manages to clear these hurdles, it could rise towards the $1,975 resistance zone, which coincides with the 61.8% Fibonacci retracement level.
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The next significant resistance level is around $2,000, which, if broken, could potentially push Ether towards the $2,050 resistance or even $2,120. These resistance levels will play a crucial role in determining the future trajectory of Ethereum’s price.
Downside Risk and Support Levels
However, if Ethereum fails to overcome the $1,930 resistance, it might experience further losses. The initial support on the downside is near the $1,920 level, followed by a major support zone around $1,900. A breach of this level could trigger bearish momentum, potentially pushing the price towards the $1,850 support level. Further downward movement could bring Ether closer to the $1,825 support level in the near term.
Analyzing the technical indicators, we observe that the hourly MACD (Moving Average Convergence Divergence) for ETH/USD is losing momentum in the bearish zone. Additionally, the hourly RSI (Relative Strength Index) has fallen below the 50 level. These indicators suggest a cautious approach as the market sentiment leans towards a bearish outlook.
In conclusion, the blockchain industry, led by Ethereum, continues to shape our financial landscape. The recent price correction in Ethereum highlights the inherent volatility of cryptocurrencies. While there is a potential for a fresh rally if key resistance levels are surpassed, downside risks must be carefully monitored. As the blockchain industry evolves, it is important to stay informed and adapt to the dynamic nature of this emerging technology.
Source: ETHUSD on TradingView.com