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Ethereum (ETH) Price Falls Back Below Long-Term Resistance Area, What Next?

The price of Ethereum (ETH) has formed a deviation above the long-term resistance area. It may decline further before the correction phase ends.

Long-Term Resistance Area

The price of Ethereum (ETH) broke above the long-term resistance area at $3,500 during the week of March 4th to March 10th, 2024. This was the final resistance level before the all-time high at $4,800.

However, the ETH price only reached a yearly high of $4,100 and then declined afterward. This week, it broke back below the $3,500 area, making the previous breakout just a deviation (red ellipse).

Such deviations are seen as bearish signals, often followed by significant downward movements.

The weekly RSI indicator has dropped below the 70 level and is trending downward, indicating that the bears are attempting a comeback.

Therefore, the ETH price may continue to correct towards the support area at $2,700, formed by the previous resistance area and the 20-week EMA (Exponential Moving Average).

ETH/USDT weekly chart. Source: TradingView

Short-Term Outlook

The 4-hour chart shows that the ETH price has found support around the $3,250 area, which has been providing support throughout March.

The 4-hour RSI indicator has created a bullish divergence and risen above the 30 level, supporting the possibility of a short-term recovery.

Thus, the ETH price may recover towards the $3,500 resistance area in the coming days.

ETH/USDT 4-hourly chart. Source: TradingView

Conclusion

Long-term indicators suggest that the ETH price is undergoing a correction towards the $2,700 area. However, it may recover to the $3,500 area in the short term before continuing its decline.

Disclaimer: Please note that this article is for informational purposes only and should not be taken as investment advice. As an investor, it is important to do your own research before making any decisions. We are not responsible for any investment decisions you make based on this information. Not Financial Advice.

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