- Ethereum is consolidating between $2,843 and $2,510, trading at $2,590.
- A drop below $2,843 may lead to declines towards $2,400.
- Breaking above $2,843 could push Ethereum towards $3,396.
Ethereum's price is currently navigating a crucial trading range that could determine its near-term direction. Presently, Ethereum is consolidating between two key levels: the 50% retracement level at $2,843 and the recent low of $2,510 recorded on August 12. As of writing, ETH is trading slightly higher by 0.75%, standing at $2,590.
Resistance and Support Levels
The $2,843 level is proving to be a significant resistance point. If Ethereum cannot maintain this level and closes below it, the price could fall to $2,510, which is the most recent support level.
Should this support fail, Ethereum might experience a further decline of approximately 4.5%, potentially testing the psychological support at $2,400. Such a drop could signal a deeper bearish trend, indicating weaker market confidence.
Analyzing the daily chart reveals that both the Relative Strength Index (RSI) and the Awesome Oscillator (AO) are trading below their neutral levels of 50 and zero, respectively. This positioning reflects a weakening momentum and suggests that the market may be bracing for a bearish trend.
The RSI and AO’s current levels are often associated with diminishing buying interest and potential for further price decline.
Potential for Upside Movement
On the flip side, closing above the $2,843 resistance could mark a shift towards a bullish phase. A successful breakout above this level might propel the price towards the high of $3,396 observed on July 29.
This move would establish a higher high on the daily chart, which is a positive technical signal. Ethereum's price action around these key levels is pivotal.
A break above $2,843 could signal a bullish trend, while a drop below $2,510 might lead to further declines. Investors should closely monitor these technical indicators to gauge the cryptocurrency's next moves.
The post Ethereum’s Critical Test: Will $2,843 Hold or Lead to a Steep Decline? appeared first on Crypto News Land.