Ethereum Price Correction: Bulls Remain Active Near Key Support Levels 🐂📉

Ethereum is experiencing a correction in price after reaching the $2,440 level. However, the bulls are expected to remain active near the support levels of $2,300 and $2,240.

Ethereum price falls from highs, but technical indicators suggest upward trend will continue.

Ethereum price is correcting gains from the $2,440 zone, but the bulls might remain active near the $2,300 and $2,240 support levels.

Ethereum, the second-largest cryptocurrency by market capitalization, is currently experiencing a correction in its recent price gains. However, there are indications that the bulls are still active and might seek support near the $2,300 and $2,240 levels.

Bulls Losing Steam? 🐃💨

After climbing higher above the $2,320 resistance zone, ETH managed to break the $2,400 level. Bulls were rejoicing as the price hit a high of around $2,441. But alas! The bears stepped in and initiated a downside correction.

The price dipped below the $2,400 and $2,380 levels, and subsequently tested the 50% Fibonacci retracement level of the upward wave from the $2,180 swing low to the $2,441 high. However, it seems that the bulls are putting up a fight near the $2,320 support zone.

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A Silver Lining in the Clouds ☁️

Despite the correction, Ethereum is still trading above $2,320 and the 100-hourly Simple Moving Average (SMA). Looking at the hourly chart of ETH/USD, a bullish flag is forming with resistance near $2,360. 🚩

A close above the $2,400 resistance level could pave the way for a potential rally towards $2,440. Breaking through this key resistance could fuel further gains, with the next significant obstacle lying at $2,500. If Ethereum manages to conquer this level, it may even test the $2,620 zone, followed by a potential rally towards the $2,750 resistance.

The Bearish Shadow Lingers 😔🐻

In case Ethereum fails to surpass the $2,400 resistance, it may continue its downward movement. The initial support on the downside is near the $2,320 level and the 100-hourly SMA. However, if the bears manage to push the price below these support levels, we may witness a more substantial decline.

The first major support after the $2,320 level is the $2,240 zone, which coincides with the 76.4% Fibonacci retracement level of the upward wave from the $2,180 swing low to the $2,441 high. A breakdown below this level may trigger a significant downward spiral, with Ether potentially testing the $2,165 support. Any further losses could push the price closer to the $2,120 level.

Technical Indicators and Key Levels 📊📉

• Hourly MACD – The MACD for ETH/USD is losing momentum in the bullish zone, implying potential consolidation in the near term.
• Hourly RSI – The RSI for ETH/USD is currently hovering around the 50 level, indicating a neutral sentiment.

Major Support Level – $2,320 Major Resistance Level – $2,400

Q&A

Q: What factors contributed to Ethereum’s recent price correction?

A: Ethereum’s price correction can be attributed to profit-taking by traders following a significant rally. Additionally, market sentiment and external factors, such as Bitcoin’s price movement, can also influence Ethereum’s price.

Q: What are the key resistance levels to watch for in Ethereum’s price?

A: The immediate resistance levels to monitor are $2,360, $2,400, and $2,440. A decisive break above these levels could signal a potential uptrend.

Q: Are there any upcoming events or developments that could impact Ethereum’s price?

A: Ethereum’s price can be influenced by various factors, including technological advancements, regulatory updates, and market trends. It is essential to stay informed about any significant developments in the Ethereum ecosystem.

Q: How can traders protect themselves against potential losses during price corrections?

A: Traders can implement risk management strategies, such as setting stop-loss orders and diversifying their portfolio. It is crucial to keep emotions in check and make informed decisions based on thorough analysis.

Future Outlook and Investment Strategies 💡💰

Looking ahead, Ethereum’s price is poised for further volatility as it navigates through the current correction. Traders and investors should carefully monitor key support and resistance levels to identify potential entry and exit points.

Long-term prospects for Ethereum remain promising, with the ongoing developments in decentralized finance (DeFi), non-fungible tokens (NFTs), and other blockchain-based applications. However, it is crucial to conduct thorough research and consider market conditions before making any investment decisions.

References

1. Bitcoin Bulls and Bears Prepare for End-of-Year $10B BTC Options Expiry
2. PancakeSwap Burn: $300 Million CAKE Whale Moving Coins
3. TradingView.com – ETHUSD
4. The Magic of Fibonnaci Retracement Levels
5. Profit-Taking Strategy in Trading

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