Ethereum, the world’s second largest cryptocurrency, is at a critical juncture. After a mighty 25% surge last month, outperforming its peers, Ethereum faces a formidable headwind in the form of resistance levels around $3,795 and $3,846. Analysts are closely watching this price battle as it could determine the coin’s trajectory in the coming days.
Breaking barriers or preparing for a fall?
Technical analysis paints a contrasting picture for Ethereum. If the bulls manage to gather enough strength to push the price above $3,845, continued gains seem likely. According to the Morecryptoonl analyst, this breakout could pave the way for a rally towards $4,015 or even a test of $4,270.
$ETH: Standard resistance is defined between $3,795 and $3,846. A break below $3,710 would mean that a 3-down c wave has begun. If the price breaks above $3,847, it may be worth checking for a larger corrective rally on wave B or Y, as per… pic.twitter.com/gQaC1dlDaT
— More cryptocurrencies online (@Morecryptoonl) June 1, 2024
Failure to break this resistance zone, however, could trigger a wave of selling, which would potentially lead to a decline in prices. Chart studies suggest that a break below $3,710 could signal the beginning of a downward correction, pushing Ethereum towards support levels at $3,560 or even as low as $3,470.
Key levels to watch
The attention of both traders and investors has shifted to these critical resistance and support levels. These price points serve as a gauge of market sentiment, and a successful break above resistance indicates bullish strength and a potential continuation of the uptrend. On the other hand, a drop below support suggests a loss of confidence among buyers and could trigger a sell-off.
The overlap of resistance and support levels on the chart further highlights their importance. This convergence indicates the potential for price swings in either direction, making the coming days crucial to Ethereum’s future trajectory.
Ethereum Price Forecast
The Etherum price prediction as of July 2, 2024, suggests a moderate upward trend, with a projected augment of 2.10%, which will take the price to $3,863.83. This projection is based on current market analysis and technical indicators.
The sentiment around Ethereum is classified as neutral, which indicates neither a mighty bullish nor bearish outlook among traders and analysts. However, the Fear and Greed Index registers a score of 73, which indicates that greed dominates the market. This high level of greed could mean that investors are bullish and willing to buy at higher prices, which could drive the market higher in the low term.
Over the past 30 days, Ethereum has experienced significant market activity, recording “green days” (days with positive price growth) 60% of the time. This frequency of green days, combined with a price volatility of 11.11%, highlights the animated nature of the cryptocurrency and its susceptibility to significant price fluctuations.
Featured image from Pexels, chart from TradingView
