ETHUSD is approaching a key resistance near $3,000, aligning with the 20-day moving average.
Failure to break $3,000 could signal further downside, with R2 at $2,979.83 being critical.
Key support levels are S1 at $2,428.57, S2 at $2,173.23, and S3 at $2,025.27.
Ethereum (ETHUSD) is approaching a pivotal resistance level near the $3,000 mark. This level corresponds to the 20-day moving average and has become a significant focus for traders. The daily chart suggests that ETHUSD is showing relative weakness compared to Bitcoin, raising concerns of a potential downside if the current rally loses momentum.
Key Resistance Levels at Play
The $3,000 level is not just a psychological barrier but also a critical technical point. If ETHUSD fails to break above this resistance, it could signal further downside risk.
Currently, the primary resistance levels for ETHUSD include R3 at $3,235.17, R2 at $2,979.83, and R1 at $2,831.87. These levels outline the possible price ceilings that ETHUSD may struggle to surpass in the short term.
The $3,000 area, specifically R2, is critical as it aligns with the 20-day moving average, often a determinant of short-term trend direction.
Potential Downside and Support Levels
Given the recent relative underperformance of ETHUSD compared to Bitcoin, there's a risk of a deeper slide if the rally cools down. The pivot point is established at $2,576.53, serving as a potential reversal zone.
Below this pivot, the support levels become crucial, with S1 at $2,428.57, S2 at $2,173.23, and S3 at $2,025.27. These levels indicate where ETHUSD might find buying interest if it declines. The $2,428.57 level (S1) is especially important, as it could offer the first line of defense against further losses.
Meanwhile, the recent political speech by former President-elect Donald Trump has provided some support for Bitcoin, but ETHUSD has lagged behind. This divergence suggests that if market sentiment shifts, ETHUSD could experience more significant volatility.
The potential for further downside exists if the current momentum doesn't hold. This makes the next few trading sessions crucial for Ethereum's short-term trajectory.
Overall, ETHUSD faces a challenging environment as it approaches the $3,000 resistance. If this level holds, the downside could extend to the lower support levels. Market participants should remain vigilant and consider these technical factors when planning their trades.
The post Daily Price Prediction: ETHUSD Tests Critical Resistance Around $3,000 Amid Relative Weakness appeared first on Crypto News Land.
