Ethereum, the world's second largest cryptocurrency, finds itself at a critical juncture. After a strong 25% rally last month, outperforming its peers, Ethereum faces a massive hurdle in the form of resistance levels around $3,795 and $3,846. Analysts are closely monitoring this price battle, as it could determine the course of the currency in the coming days.
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Breaking barriers or preparing to stumble?
Technical analysis paints a contradictory picture for Ethereum. If the bulls can muster enough strength to push the price above $3,845, the rally is likely to continue. This breakout could pave the way for a rally towards $4,015 and even a test of $4,270, according to analyst Morecryptoonl.
$ Ethereum: Standard resistance is identified between $3,795 and $3,846. A break below $3,710 indicates that wave c of 3 on the downside has begun. If the price breaks above $3,847, it is worth exploring whether there is a larger corrective rise in wave B of Y, according to… pic.twitter.com/gQaC1dlDaT
— More cryptocurrencies online (@Morecryptoonl) June 1, 2024
However, failure to break through this resistance area could trigger a wave of selling, which could lead to lower prices. Chart studies suggest that a break below $3,710 could mark the beginning of a downward correction, pushing Ethereum towards the support levels at $3,560 and even the lows at $3,470.
Key levels to watch
The focus for both traders and investors has shifted to these critical resistance and support levels. These price points act as a gauge of market sentiment, with a successful breakout above resistance indicating bullish strength and a potential continuation of the uptrend. On the contrary, a drop below support indicates a loss of confidence among buyers and may lead to heavy selling.
The overlapping of these resistance and support levels on the chart further highlights their importance. This convergence indicates the potential for the price to swing in either direction, making the coming days crucial for Ethereum's future trajectory.
Ethereum price forecast
the Ethereum price prediction For July 2, 2024, it indicates a modest upward trend, with an expected increase of 2.10%, bringing the price to $3,863.83. This forecast is based on current market analysis and technical indicators.
The sentiment surrounding Ethereum is rated as neutral, which does not indicate a strong bullish or bearish outlook among traders and analysts. However, the Fear and Greed Index recorded a score of 73, indicating the dominance of greed in the market. This high level of greed can indicate that investors are optimistic and willing to buy at higher prices, which could cause the market to rise in the short term.
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Over the past 30 days, Ethereum has seen significant market activity, recording green days (days with a positive price increase) 60% of the time. This frequency of green days, combined with the 11.11% price volatility, highlights the dynamic nature of the cryptocurrency and its susceptibility to significant price swings.
Featured image from Pexels, chart from TradingView
