Key Takeaways:
- Ethereum is correcting gains from the $4,000 resistance zone.
- ETH/USD is testing a crucial parabolic curve with support at $2,900 on the weekly chart.
- The price could decline heavily if there is a weekly close below $2,900.
NEW DELHI (CoinChapter.com) — Ethereum (ETH) is struggling to stay above $3,000. The bears could gain strength if they manage a weekly close below $2,900.
Ethereum Price Faces Crucial Test
In the past few weeks, Ethereum price saw bearish moves below the $4,000 resistance like Bitcoin. ETH declined below the $3,600 and $3,500 support levels. The bears were able to push the price below the $3,500 level.
There was a sharp drop below the 50% Fib retracement level of the main increase from the $2,172 swing low to the $4,082 high. The bears are now struggling to push the price below the $2,900 support. Ether is also testing a crucial parabolic curve with support at $2,900 on the weekly chart and is well above the 50-week simple moving average (blue).
It seems like Ethereum is holding the parabolic curve and is stable above the 61.8% Fib retracement level of the main increase from the $2,172 swing low to the $4,082 high.
The bears are pushing and already made a few attempts to push ETH below the curve support at $2,900. If they succeed, there could be a strong decline. In the stated case, the bears might aim for a move toward the $2,620 support zone. Any more losses could send the price toward the 50-week simple moving average (blue) at $2,200 where the bulls might take a strong stand.
Fresh Increase In ETH?
Conversely, Ethereum might start a fresh increase from the curve support. Immediate resistance is near the $3,200 level. If the price clears the $3,200 resistance, it could open the doors for a move toward the $3,400 resistance.
To start a fresh rally, ETH must settle above the $3,400 resistance. The next key resistance might be $3,630. A close above the $3,630 level could initiate a move toward the $4,000 resistance. Any more gains might send the price toward the $4,400 level in the coming weeks.
Overall, Ethereum price is struggling to stay above the $2,900-$3,000 support zone. If the bulls fail to protect a weekly close below $2,900, there could be a sharp move toward $2,200. Conversely, the price might resume its increase toward $4,400 in the coming weeks.
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