ETH Struggles At Critical Support, Breakdown Can Lead to $3500 Retest

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Ethereum’s (ETH) failure to break the all-time high at $4,380 quickly pushed the price back to the support range. Despite the correction, it seems ETH can drop much lower if the short-term bearish momentum continues.

Key Support level: $4,000 , $3,500

Key Resistance level: $4,380

Ethereum is currently testing the critical support level at around $4,000. If the level fails to hold, ETH can drop to the next support level found around $3,500.

On Thursday, Ethereum found strong rejection following a failed attempt to break the ATH level set in May. The failure to break caused an immediate plunge to the downside. This resulted in a red candle’s wick, which is bearish.

Another concern for the bulls is the option of a double-top formation. This setting is textbook bearish and takes place when the asset is failing to break the same peak twice in a row.

ethusd-oct24-p1

ETH Price Technical Indicators

Trading Volume: The volume of Ethereum has declined since the ETH price got rejected by the ATH resistance on Thursday. This indicates that the bulls have lost interest and bears are in control of the price right now.

RSI: The RSI is curving down on the daily timeframe, indicating that this correction may continue further down. However, it is still too early to decide, as the mid and long-term momentum is still very bullish.

MACD: The histogram is making lower highs on the daily timeframe. This is a warning sign that the positive trend can reverse in the short term. However, the moving averages on the MACD are still firmly placed on the bullish side and a possible bearish cross seems to be far away, as of now.

ethusd-oct24-p2

Bias

The bias remains bullish on ETH as long as the price holds above $4,000, there are still a few hours left until the daily and weekly candle closes (midnight UTC). Even if ETH slumps to $3,500, the larger bullish trend remains intact and such a correction would be an expected pullback after ETH’s first attempt to break the ATH set in May.

Short-Term Price Prediction for ETH

Ethereum’s price is getting close to the apex of a triangle formation, as seen on the charts above (marked blue). Therefore, a break to either side can be expected soon.

The bulls are struggling to hold the price above $4,000 amid the upcoming weekly close; however, there is mounting pressure building from the bears that are eager to push ETH lower towards $3,500. At this time, it is unlikely that ETH can drop below $3,500 as interest in ETH remains high and there is an expectation that it will break its all-time high in Q4 of this year, similar to Bitcoin.

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Cryptocurrency charts by TradingView.



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