Ethereum’s price is currently on a downtrend, with the market showing a consistent decline after breaking below the key trendline. This indicates that the correction is underway and may continue unless support levels hold. ETH is currently down by over six percent and is trading slightly above the $3000 levels.
Analysis of Ethereum’s Downtrend and Key Support Areas
At present, Ethereum is undergoing a pullback as part of a larger uptrend. As the price approaches the support zone, it could present opportunities for buyers. However, this may be the last chance for bulls to regain momentum before further downward pressure kicks in.
If Ethereum fails to hold at crucial support levels, more downside is anticipated, with altcoins likely to follow suit.
Key Support Levels to Monitor
Ethereum’s price is facing resistance at $3,613, with further declines expected if it remains below this level. The next critical support levels to watch are around $2,920 and $2,840. These Fibonacci support zones could serve as potential reversal points, but unless there are clear indications of an upward trend, the downtrend is likely to persist.
Potential Early Reversal at Fibonacci Support Level
There is a chance that Ethereum’s correction could conclude sooner than anticipated. The Fibonacci extension at $2,840 is viewed as a possible turning point for the correction. However, if the downtrend lacks strong momentum or appears choppy, it could mean that the correction will end earlier than expected. An early reversal would be beneficial for altcoins, possibly leading to a quicker recovery.
Market Trends to Watch in the Near Future
In the upcoming days, the price movements will indicate whether the current downtrend maintains its strength or begins to weaken. A weakening Ethereum price could signal that the correction is nearing its conclusion, potentially paving the way for a rebound. Altcoins are likely to follow suit in such a scenario.
