Ethereum’s price is currently undergoing a correction that began in early December. The price is moving downwards towards a key support range between $2,400 and $2,840. Although this correction may unfold in multiple stages, there is a possibility that it could end sooner than anticipated. As of now, Ethereum has decreased by over one percent and is trading below the $3300 level.
Key Resistance and Support Levels
The trend is bearish as long as Ethereum remains below the resistance zone between $3,370 and $3,613. If Ethereum drops below $3,170, which was the low on Thursday, it could indicate further downward movement. However, if Ethereum manages to break through the resistance area, it may suggest a larger pullback is in progress.
Alternative Scenario: Potential Upside Breakout
There is a possibility of an alternative scenario where the current price action forms a triangular pattern, potentially leading to an upward breakout. While this scenario is less probable, it’s important to monitor as it could have positive implications for Ethereum.
Looking Ahead: Possible Path to New Highs
Despite the short-term downtrend, the overall uptrend remains intact. If Ethereum finds support soon and stabilizes, it could set the stage for a stronger rally towards new all-time highs. Keep an eye out for signs of a price bottom, as this could indicate the next upward movement.
