Ethereum (ETH) Price Ups and Downs: Bearish Correction After Monthly Gain of Over 20%
Ethereum (ETH), known as the “King of Altcoins,” has experienced an impressive run over the past month, surging more than 20%. However, the market seems to have entered a correction phase recently, with ETH price failing to hold the resistance level of $3,550, and the short-term moving average has also become an insurmountable obstacle.
After the Ethereum spot ETF was approved, the price of ETH once climbed from US$3,000 to a peak of US$3,818, but then the market corrected and the price once fell to a recent weekly low of US$3,430. However, as the price recovers below $3,500
Currently, the price of Ethereum (in U.S. dollars) is $3,521, and although transaction volume has declined, the overall sentiment in the market remains positive. Investors seem to be expecting ETH to rebound to as high as $4,000
However, Ethereum’s bulls appear to have suffered some setbacks in the recent past. Although the price showed a mild but significant intraday rise, with ETH price successfully rebounding above $3,500 and challenging the resistance levels of $3,560 and $3,617, the overall trend of the market still showed a correction.
On the 4-hour ETH/USDT chart, we can see a descending moving channel forming along with a key bearish trend line near $3,560. Meanwhile, new support formed at $3,428. While prices are currently above all long-term moving averages, a correction is still evident in the short-term
In terms of technical indicators, the MACD is at -40, showing signs of losing momentum within the bearish zone, while the RSI, at 44, is neutral but appears to be facing more selling pressure.
So, can Ethereum reach highs of $4,000 again soon? Judging from the current market conditions, it is not easy to achieve this goal. While Ethereum’s price action tends to show some parallelism with Bitcoin (BTC), recent fundamental updates do not appear to be enough to support further gains in ETH price
In the near term, Ethereum needs to break the $3,560 resistance or risk falling below $3,400 and $3,350. Once this resistance is broken, bears may gain the upper hand further and push the price lower.
