At 3,143 dollars, the Ethereum price was under robust selling pressure, a critical area that meets the 100% Fibonacci extension. The discrepancy in maintaining a specific area led to a retracement in ETH and started trading around $3,105. Although there was a dip, it is currently up by 6% on a weekly basis, and hence there might not be a breakdown in the larger picture.
This on-going correction comes on the heels of several days of sustained market upside. Although market action has been tempered on this correction, it is currently hovering around an important level.
$3,049 is a Make or Break Support
The $3,049 level is one that the market is paying close attention to, as it is the 50% retracement point for the upward movement. If this level holds as support, it may be that this is nothing more than a correction before resuming the upward movement. The pattern that is emerging fits well with that of the three-legged correction, common in the wave four period.
A conviction fall of $3,049 for Ethereum may push downtrends further. In such a scenario, support levels for Ethereum would be ranging from $2,944 to $2,928, and buyers may enter again at such levels.
$3,300 Must Be Reclaimed for Bulls to Gain Control
Ethereum is still operating below its long-term indicators for the trend. The 200 day EMA is close to $3,357, whereas the 200 day Simple Moving Average is higher at $3,599.
Until then, any rally above $3,300 would only create selling pressure. Prior to re-entry above $3,300, it is essential to observe whether there is any kind of resistance or pullback. Otherwise, it might just turn out to be another false rally.
Support at $2,600 Remains in Play If Breakdown Continues
If selling pressure strengthens, a broader support area around $2,633 may be in focus. This was a low in November and a floor throughout the two months. Such a move would still be within a broader range for Ethereum.
As of now, the market is stuck within a box trading between $2,600 and $3,300. A clear move beyond these levels is set to confirm Ethereum's future trend
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