Ethereum is in a typical accumulation phase after the recent correction and is now targeting $3,000. After falling to $2,116 20 days ago, ETH has experienced a massive price surge, recovering to higher levels, indicating that bullish momentum is building.
This accumulation phase has attracted widespread attention, and the recovery from recent lows has sparked new optimism. This potential rebound is an important milestone in Ethereum's current market cycle, reflecting Ethereum's strength and investors' confidence in its long-term value. As Ethereum continues to accumulate and consolidate, the market is preparing for a possible major breakout, laying the foundation for new highs in the near future.
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Ethereum price starts downside correction
Ethereum price extended its gains and broke the $2,750 resistance. ETH even climbed above $2,800 before the bears emerged. The price formed a high at $2,820 and later started a downside correction like bitcoin.
The price declined below the $2,780 level. The price declined below the 50% Fibonacci retracement level of the up move from the $2,535 swing low to $2,820 high. Moreover, the price declined below a key bullish trend line with support at $2,740 on the hourly chart of ETH/USD.
Ethereum price is currently trading below the $2,740 level and the 100 hourly simple moving average. However, the bulls are likely to remain active near the $2,645 support level. It is close to the 61.8% Fibonacci retracement level of the upward wave from the $2,535 swing low to $2,820 high.
If there is another up move, the price might face resistance near the $2,720 level. The first major resistance is near the $2,740 level. A close above $2,740 might push Ether towards the $2,820 resistance level. The next key resistance is near the $2,880 level. A break above the $2,880 resistance level might push the price towards the $3,000 resistance level in the near term.
Ethereum Price Structure Points to an Imminent Breakout
After a relatively long period of consolidation, Ethereum looks ready to move towards higher prices. ETH could retest lower demand at $2,611 before aiming for the important $3,000 mark. The 4-hour chart suggests that this consolidation period has reached a critical point and a significant move could be imminent.
The $3,000 level is more than just a psychological barrier; it has also acted as support in recent months until it was breached earlier this month, making it a key resistance to break out of. If Ethereum manages to break above this level and consolidate, it could pave the way for a continued uptrend.
This expected breakout could kick off a new bullish phase for Ethereum as the market looks to break out of its recent stagnation and head towards new highs. The next few days could be crucial in determining Ethereum’s direction.
ETH Technical Analysis
Ethereum is trading at $2,698; its next move could go in either direction. ETH could retest lower demand around $2,500 before attempting a push toward the $3,000 mark. This retest would allow the market to establish a more solid foundation for a continued uptrend. However, given the recent volatility, it is also possible that Ethereum could bypass the retest and push toward $3,000.
Volatility suggests that anything can happen, and rapid price movements demonstrate this unpredictability. A key technical level to watch is the daily 200 exponential moving average (EMA), currently at $3,026. This EMA acts as a resistance point, and a break above it would strongly suggest that Ethereum will continue to rise.
In simple terms
Currently, the price of Ethereum is correcting the gains at the $2,820 resistance level. Unless there is a close below the $2,645 support level, ETH is likely to rise again. At the same time, after a relatively long period of consolidation, Ethereum is expected to test the lower demand and then aim at the $3,000 mark. This consolidation period has reached a critical point. In summary, the upside potential is expected to be limited in the short term, but in the long term, as the correction consolidation ends, this will allow the market to lay a more solid foundation for a continued upward trend. It is expected that ETH will aim at the $3,000 mark in the future, which will keep it bullish, and it is expected that this will lay the foundation for it to reach new highs.
