Ethereum, the world’s second largest cryptocurrency, is at a critical juncture. After a strong 25% surge in the past month, outperforming its peers, Ethereum faces a formidable hurdle 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.
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Breaking barriers or bracing yourself for a fall?
Technical analysis paints a contrasting picture for Ethereum. If the bulls can gather enough strength to push the price above $3,845, a continuation of the rally seems likely. This breakout could pave the way for a rise to $4,015 and even a test of $4,270, according to analyst Morecryptoonl.
$ETH: Standard resistance is defined between $3,795 and $3,846. A break below $3,710 would indicate that a 3-down wave c has begun. If the price breaks above $3,847, it will be worth investigating whether a larger corrective rally in wave B of Y is taking place, according to the… pic.twitter.com/gQaC1dlDaT
— More crypto online (@Morecryptoonl) June 1, 2024
However, if this resistance zone is not broken, it could trigger a selling wave, potentially leading to a price drop. The chart studies suggest that a break below $3,710 could mark the beginning of a downward correction, pushing Ethereum towards support levels at $3,560 and even as high as $3,470.
Important levels to watch
The focus for traders and investors alike has shifted to these critical resistance and support levels. These price points act as a gauge of market sentiment, with a successful break above resistance indicating bullish strength and a possible continuation of the uptrend. Conversely, a drop below support signals a loss of confidence among buyers and could lead to a sell-off.
The overlap of these resistance and support levels on the chart further underlines their significance. This convergence signals a potential for a price swing in both directions, making the coming days crucial for Ethereum’s future trajectory.
Ethereum price prediction
The Ethereum price prediction for July 2, 2024 indicates a modest uptrend, with an expected increase of 2.10%, bringing the price to $3,863.83. This projection is based on current market analysis and technical indicators.
Sentiment around Ethereum is classified as Neutral, indicating that there is no strong bullish or bearish outlook among traders and analysts. However, the Fear & Greed Index registers a score of 73, indicating a preponderance of greed in the market. This high level of greed may indicate that investors are optimistic and willing to buy at higher prices, potentially driving the market higher in the short term.
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Over the past 30 days, Ethereum has experienced significant market activity, with green days (days with a positive price increase) recorded 60% of the time. This frequency of green days, combined with a price volatility of 11.11%, highlights the dynamic nature of the cryptocurrency and its sensitivity to significant price fluctuations.
Featured image from Pexels, chart from TradingView