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Ethereum Price Dips to $2990 Amid Market Correction; Quick Trade Idea
Arslan Butt•Wednesday, May 1, 2024•2 min read
In today’s Daily Crypto analysis, Ethereum (ETH), a leading player in the blockchain sector, is trading at $2990.60, marking a 2.10% decrease from the previous session.
This downturn reflects a broader trend observed across the cryptocurrency market, with Ethereum currently trading below its pivotal level of $3074.90, suggesting a bearish bias could be setting in.
Key Points:
- Ethereum trades at $2990.60, under pivotal $3074.90, indicating possible further declines.
- Technical indicators suggest a bearish outlook with potentially oversold conditions.
- Resistance at $3173.10 and support levels are critical for upcoming price action.
Ethereum’s price behavior has been somewhat turbulent, aligning with the fluctuations typical in the volatile crypto market. After failing to maintain the pivot point, Ethereum now faces immediate resistance levels at $3281.80, $3415.10, and $3621.30.
Each of these levels represents a potential turning point that could signal a stronger upward movement if Ethereum can regain its momentum. Conversely, support levels at $2873.10, $2724.50, and $2587.50 are crucial for preventing further declines.
If these support zones are breached, it could indicate a deeper bearish trend is underway. The technical indicators for Ethereum are currently reinforcing the cautious stance among traders. The Relative Strength Index (RSI) is at 29, signalling that Ethereum might be in oversold territory.
However, this could also indicate a dominance of selling pressure, suggesting that the bearish mood is still influential. The 50-Day Exponential Moving Average (EMA), currently at $3173.10, acts as another significant barrier.
Ethereum’s recent trading patterns have shown a consistent struggle to break above this EMA, affirming the resistance level that could cap potential rallies. During the last few trading sessions, Ethereum has formed a bearish candlestick pattern on the four-hour timeframe, consolidating below the 50-Day EMA—a bearish signal for market watchers.
This pattern, alongside the observed technical setup, suggests that Ethereum’s path could face downward pressure in the near term unless there’s a significant market catalyst to shift momentum.
As the market heads into another trading cycle, Ethereum’s position just below key technical thresholds paints a cautious but observant picture.
Investors and traders are advised to monitor these levels closely, as breaks or bounces from these points could dictate the direction for Ethereum’s next significant move.
Conclusion:
Ethereum’s current market position is precarious, with potential for further decline if it fails to reclaim key technical levels.
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ABOUT THE AUTHOR
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Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.
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