Ethereum price bottoming signal: recovery is imminent?
Ethereum prices have continued to decline recently, breaking the $3,320 support level and once testing the $3,240 support area. But now, the market has observed a possible rebound signal. Is Ethereum about to recover?
Ethereum's price trend has not been optimistic recently. Following the bear market pace of Bitcoin, the price has fallen below the important mark of $3,350 and even hit a low of $3,230. But the good news is that the price is currently correcting these losses and showing some signs of recovery.
From the technical chart, the price of Ethereum has climbed above the 23.6% Fibonacci retracement level of the recent decline from the high of $3,517 to the low of $3,230. This is a positive sign that the market may be brewing a rebound. However, to truly rebound, Ethereum still needs to overcome several important resistance levels.
First, the price may encounter resistance near $3,375, which is the 50% Fibonacci retracement level of the recent decline. The bigger challenge lies in the $3,450 area, where not only the 100 hourly simple moving average is suppressed, but also a key descending trend line forms resistance near $3,440.
If these resistance levels can be effectively broken, the price of Ethereum is expected to rise further. The main resistance is at $3,540, and once it is broken, the price may advance to $3,620 or even $3,650. Further gains may push the price of Ethereum to the resistance area of $3,720.
However, if Ethereum fails to break through the $3,450 resistance, the price may fall again. The initial support level is around $3,325, while the more critical support is in the $3,240 area. If the price falls below this support, it may fall further to $3,200 and may even touch the low of $3,120.
From the technical indicators, the MACD (moving average convergence divergence) is losing momentum in the bear market area, while the RSI (relative strength index) has risen back above the 50 area. These signals suggest that the market may be gathering strength in preparation for the next rally.
