ETH – Bounce Incoming or Deeper Dive? Let’s Talk
Let's dive into the current state of Ethereum (ETH). The market is looking a bit uncertain, with ETH experiencing a 2.34% decline in the last 24 hours, bringing its price to around $2,718.29. This downturn is part of a broader trend, with some analysts predicting a potential correction phase due to overbought conditions.
*Key Factors to Watch:*
- *Support Levels:* Immediate support lies at $3,519, which aligns with wave (iii)’s peak. A deeper retracement could target $2,516 if the uptrend falters.
- *Resistance Levels:* The $4,000 mark has proven to be a significant hurdle, with ETH facing rejection at this level previously.
- *Market Sentiment:* The Relative Strength Index (RSI) signals overbought conditions, which could lead to a temporary consolidation or corrective pullback before the uptrend resumes ¹.
*Possible Scenarios:*
- *Bounce:* If ETH finds support at key levels, such as $3,669 (0.236 Fib) or $3,418 (0.382 Fib), it could resume its uptrend with a new attempt at breaking the $4,075 resistance.
- *Deeper Dive:* Failure to hold support levels could lead to deeper corrections, with $3,012 providing a solid base for another bullish attempt.
Given the current market conditions, it's essential to keep a close eye on these key levels and adjust your strategy accordingly. What are your thoughts on ETH's current trajectory?
