Chart Analysis
Ethereum (ETH) has experienced a significant pullback after hitting resistance around the $3,400 level. The price has dropped by approximately 12%, indicating a strong rejection from sellers.
Key Points:
* Resistance Rejection: The price encountered strong resistance at the $3,400 level, leading to a sharp decline.
* CME Gap Fill: The current price action is likely to fill the CME gap at around $3,000.
* Potential Support Level: The $2,800 level is a crucial support zone to watch. If the price breaks below this level, further downside could be expected.
Trading Strategy:
* Short-Term Traders: Traders may consider taking profits on existing long positions or waiting for a potential dip to re-enter at a lower price.
* Long-Term Investors: Hold onto your positions, as the long-term outlook for Ethereum remains bullish. However, be prepared for potential short-term volatility.
Disclaimer:
Investing in cryptocurrencies involves risk. Always do your own research before making any investment decisions.
Stay tuned for more updates on Ethereum and other cryptocurrencies!