Ethereum Faces Pressure: Detailed Technical Analysis on September 4, 2024
Ethereum, after undergoing a notable correction, has started to show signs of a rebound, although this recovery appears to be facing challenges. The future outlook for ETH is worth examining in light of recent developments.
Following a modest bounce from the $2,800 support level, Ethereum surged to approximately $3,600. Unfortunately, selling pressure intensified, particularly during “Black Monday,” resulting in a sharp 40% decline. The cryptocurrency breached its support level, reaching a new low at $2,100, aligning with the support established towards the end of 2023. Fortunately, Ethereum found buying support at this level, enabling it to climb back to $2,800. However, this buying interest did not sustain for long.
At present, the Ethereum price is hovering around $2,400, indicating that the cryptocurrency is facing selling pressure that is impacting its price, complicating efforts to alter the short-term structure, which remains bearish. While the medium and long-term trends theoretically lean towards bullish territory, uncertainties persist. Ethereum has dipped below both its 50 and 200-day moving averages, with downward crossovers observed. On the momentum front, there is a recent rebound that appears to be holding for now, as demonstrated by both ETH and its oscillators.
Technical analysis, conducted in collaboration with Elie FT, an investor and dedicated cryptocurrency trader, now a trainer at Family Trading, a community of proprietary traders active since 2017, sheds light on the current situation.
Regarding Ethereum price forecasts, if ETH manages to stay above $2,300, a bullish continuation could be anticipated, with a potential retest of $2,800. Subsequent resistance levels to monitor include around $3,200 and possibly $3,400. Further bullish momentum could see Ethereum reaching $3,500, representing a significant increase of over 45%.
Conversely, failing to sustain above $2,300 could lead to a potential retracement towards $2,100. In case of a continued bearish scenario, the next crucial support level would be approximately $2,000, with a risk of descending further to $1,900, marking a decline of about 20%.
In conclusion, Ethereum faces selling pressure that maintains its short-term bearish trend despite intermittent rebound attempts. The medium and long-term outlook remains uncertain, emphasizing the importance of closely monitoring price reactions at key levels to validate or adjust current forecasts. Vigilance against potential market fluctuations is crucial, given the rapid evolution of cryptocurrency prices influenced by various fundamental factors.
