Ethereum’s recent price correction has been a topic of concern for investors, with the cryptocurrency moving towards a key support range between $2,400 and $2,840. While the correction may unfold in multiple stages, there is a possibility that it could end sooner than anticipated. Currently, Ethereum is down by over one percent and is trading below the $3,300 level.
Key Resistance and Support Levels
The trend remains bearish for Ethereum as long as it stays below the resistance zone between $3,370 and $3,613. A break below $3,170, which was the low from Thursday, could signal further downward movement. However, if Ethereum manages to push higher within the resistance area, it may indicate the formation of a larger pullback.
Alternative Scenario: Potential Upside Breakout
There is a potential alternative scenario where the current price action forms a triangular pattern, possibly leading to an upside breakout. While this outcome is less probable, it is still worth monitoring as it could have positive implications for Ethereum’s price movement.
Looking Ahead: Possible Path to New Highs
Despite the short-term downtrend, the overall uptrend of Ethereum remains intact. If Ethereum finds support soon and begins to stabilize, it could set the stage for a stronger rally towards new all-time highs. Observing signs of a price bottom is crucial, as it could signify the beginning of the next upward move.
In conclusion, Ethereum’s price correction is a natural part of the cryptocurrency market’s volatility. By closely monitoring key resistance and support levels, as well as alternative scenarios for potential breakouts, investors can better navigate the current market conditions. Keeping an eye on signs of stabilization and a possible price bottom will be essential in determining Ethereum’s path to new highs.