Important Points:
– Ethereum is currently experiencing a correction after facing resistance at $4,000.
– On the weekly chart, ETH/USD is testing a crucial parabolic curve with support at $2,900.
– If the price closes below $2,900 for the week, there could be a significant decline.
Ethereum Bulls May Face a Surprise
In a surprising turn of events, Ethereum (ETH) is struggling to maintain its position above $3,000, and if the bears manage to close the week below $2,900, they could gain strength.
Crucial Test for Ethereum Price
Over the past few weeks, Ethereum has faced bearish pressure similar to Bitcoin, resulting in a drop below the $4,000 resistance level. The price declined further, breaking through the $3,600 and $3,500 support levels. The bears successfully pushed the price below $3,500.
As a result, the price experienced a sharp drop below the 50% Fibonacci retracement level of the significant increase from the $2,172 swing low to the $4,082 high. Currently, the bears are struggling to push the price below the key support at $2,900. Additionally, Ether is testing a crucial parabolic curve with support at $2,900 on the weekly chart, which is well above the 50-week simple moving average (blue line).
Ethereum Price Weekly Chart
The Ethereum price weekly chart shows that it is currently holding above the parabolic curve and is stable above the 61.8% Fibonacci retracement level of the main increase from the $2,172 swing low to the $4,082 high.
However, the bears are making continuous attempts to push ETH below the curve support at $2,900. If they succeed, there could be a significant decline. In this scenario, the bears might aim for a move towards the $2,620 support zone. Further losses could lead to a test of the 50-week simple moving average (blue line) at $2,200, where the bulls are expected to strongly defend their position.
Possibility of a Fresh Increase in ETH
Alternatively, Ethereum could initiate a fresh increase starting from the curve support. The immediate resistance lies near the $3,200 level. If the price manages to surpass this resistance, it could open the doors for a move towards the $3,400 resistance.
To trigger a fresh rally, ETH must settle above the $3,400 resistance. The next key resistance level to watch out for is $3,630. If the price manages to close above this level, it could lead to a move towards the $4,000 resistance. Further gains may even push the price towards the $4,400 level in the upcoming weeks.
In conclusion, Ethereum is currently facing difficulties in staying above the crucial support zone of $2,900-$3,000. If the bulls fail to protect a weekly close above $2,900, there could be a sharp decline towards $2,200. However, if the bulls manage to defend the support and resume their upward momentum, the price may reach $4,400 in the coming weeks.