Crypto Mining News Daily

Monday, June 17, 2024
HomeAnalysisEthereum Faces Key Support at $3,320 as Investors Await ETF Decision

Ethereum Faces Key Support at $3,320 as Investors Await ETF Decision

-

Ethereum (ETH) is showing a few bearish signs from $3,640. However, ETH could recover if there is no daily close below the 50-DSMA.

Ethereum Price Reaches Key Support

Ethereum has been experiencing a bearish reaction from the $4,082 high. The cryptocurrency declined below the $3,880 and $3,750 support levels. There was a move below the 23.6% Fib retracement level of the key increase from the $2,172 swing low to the $4,082 high.

Ethereum price daily chart | Source: ETH/USD on TradingView.com

A sharp decline was below $3,200, but the bulls were active above the $3,000 support. More importantly, Ether stayed above the 50-day simple moving average (blue).

Ethereum recovered losses and climbed above the $3,550 level. However, the bears were active near the $3,640 zone. The price again moves below the $3,550 level, like Bitcoin below $68,000. It is now testing a connecting bullish trend line with support at $3,325 on the daily chart.

The bears seem to attempt a daily close below the 50-day simple moving average (blue). If there is a daily close below the trend line support and the 50-DSMA, there could be a continuation of the downside.

The first major support below the trend line sits at $3,120. The next key support is near the $2,900 level. It coincides with the key increase’s 61.8% Fib retracement level from the $2,172 swing low to the $4,082 high.

A downside break and a daily close below the $2,900 support could increase selling pressure. In the stated case, ETH could decline toward the $2,620 support level in the coming days.

Fresh Increase In ETH?

Conversely, Ethereum bulls might manage to protect losses below the trend line support. The price might recover and test the $3,500 resistance in the stated case. The first major resistance is visible near the $3,640 level.

A clear move above the $3,640 resistance could send Ether higher. The next major resistance is $3,800. If the bulls clear this resistance, the price could resume its uptrend and rise toward the $4,080 resistance in the near term.

Overall, Ethereum’s price is approaching crucial support at $3,35, which is 50-DSMA. ETH must stay above the $3,325 support to avoid a larger decline.

Ethereum investors are navigating the second quarter of 2024, cautiously embracing optimism, leveraging insights from historical trends and market data to anticipate potential gains.

Ethereum: Historically Strong Q2 Performance

Crypto analyst Ali Martinez recently shared a screenshot of Ethereum’s quarterly returns on social media platform X, highlighting the cryptocurrency’s significant spikes during previous second quarters, notably in 2017 and 2019. These spikes, with increases of 450% and over 100% respectively, have intrigued investors and led them to closely monitor Ethereum’s performance in the current quarter.

Several key financial players, including BlackRock, Fidelity, and Grayscale, have expressed interest in launching a spot Ethereum ETF. However, the regulatory hurdles present significant challenges, raising questions about Ethereum’s integration into traditional financial markets.

Market indicators reflect Ethereum’s current state, with nearly 5% decline in the last 24 hours, trading at $3,380. Despite this dip, Ethereum briefly surpassed $3,500 over the weekend, showcasing resilience amidst market fluctuations.

Ethereum’s second quarter outlook is marked by a delicate balance between historical performance patterns, regulatory uncertainties, and market dynamics. While past trends hint at potential gains, the pending decision on the spot Ethereum ETF introduces a level of unpredictability to the market.

Ethereum price faced rejection and dropped from the $3,650 zone. ETH retested the $3,320 support and might start another increase.

Ethereum started another decline and traded below the $3,500 support zone.
The price is trading below $3,500 and the 100-hourly Simple Moving Average.
There is a key bearish trend line forming with resistance near $3,420 on the hourly chart of ETH/USD (data feed via Kraken).
The pair could gain bullish momentum if it settles above the $3,450 resistance zone.

Ethereum Price

Source: ETHUSD on TradingView.com

If there is a move above the $3,650 resistance, Ethereum could even climb toward the $3,720 resistance. Any more gains might call for a test of $3,880.

More Losses In ETH?

If Ethereum fails to clear the $3,420 resistance, it could continue to move down. Initial support on the downside is near the $3,320 level.

The first major support is near the $3,250 zone. The next key support could be the $3,220 zone. A clear move below the $3,220 support might send the price toward $3,120. Any more losses might send the price toward the $3,040 level.

Technical Indicators

Hourly MACD – The MACD for ETH/USD is losing momentum in the bearish zone.

Hourly RSI – The RSI for ETH/USD is now below the 50 level.

Major Support Level – $3,320

Major Resistance Level – $3,420

Source: CoinChapter

LATEST POSTS

Most Popular

Learn How to Mine Crypto

Join our mailing list and receive a free copy of Crypto Mining 101, our detailed guide on how crypto mining works, must have tools to get started, and how to be successful.

Note: We’ll never sell, trade, or abuse your information, and it’s simple to opt out! Read our Privacy Policy here.