Ethereum Price Signals Bullish Exhaustion, Can Bulls Save The Week?
Key Takeaways:
- Ethereum is struggling to recover above the $3,300 resistance zone.
- ETH/USD is still above a crucial parabolic curve with current support at $3,000 on the weekly chart.
- The price could decline heavily if there is a weekly close below $3,000.
New Delhi (CoinChapter.com): Ethereum (ETH) is struggling to gain bullish momentum above $3,300. There could be a sharp decline if the bears push the price below $2,900-$3,000.
Ethereum Price Near Crucial Juncture
In the last weekly analysis, we discussed the importance of the $2,900 support for Ethereum. ETH price did stay above the $2,900 support zone and recently attempted a recovery wave, like Bitcoin. There was a minor increase above the $3,050 and $3,150 levels.
However, the bears were active near the $3,250 and $3,300 levels. Earlier, there was a sharp decline below the 50% Fib retracement level of the upward move from the $2,172 swing low to the $4,082 high. The price tested the $2,900 support and started a consolidation phase.
The bulls seem to be putting up a strong fight near the $2,900 and $3,000 support levels. Besides, Ethereum is still above a crucial parabolic curve with current support at $3,000 on the weekly chart.
The last two candles now signal a possible bullish exhaustion pattern. Having said that, the bears need a weekly close below the parabolic curve, the $2,900 support zone, and the 61.8% Fib retracement level of the upward move from the $2,172 swing low to the $4,082 high.
If Ether settles below the $2,900-$3,000 support zone, there could be a major pullback. In the stated case, the bears might aim for a move toward the $2,620 support zone. The next major support sits near the 50-week simple moving average (blue) at $2,200.
Fresh Rally In ETH?
Conversely, Ethereum might remain strong above the curve support and attempt another increase. Immediate resistance is near the $3,250 level. The first major resistance is $3,300. If the price clears the $3,300 resistance, it could open the doors for a move toward the $3,630 resistance.
The next key resistance might be $3,880. A close above the $3,880 level could initiate a move toward the $4,000 resistance. Any more gains might send the price toward the $4,400 level in the coming weeks.
Overall, Ethereum price is showing a few bearish signs below $3,300. If the bulls fail to protect a weekly close below $2,900, there could be more losses toward $2,200. Conversely, the price might start another increase toward $3,630 in the coming weeks.
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