Key Observations
- Ethereum has encountered resistance at the $2,800 threshold, reversing its earlier gains.
- A prominent bearish trend line restricts ETH price near $2,820 on the daily chart, posing challenges.
- Bitcoin faces potential further declines, threatening the $60,000 support level.
- Gold is showing signs of possibly advancing towards the $2,700 mark.
Ethereum’s Analysis: Can It Escape a Deeper Downturn?
Ethereum recently attempted to break past the $2,750 level but faced rejection, signaling a potential downturn. This rejection pattern emphasizes that Ethereum rejected levels might spark a further dip unless market dynamics shift.
Understanding Ethereum’s Price Challenges
The daily chart reveals that Ethereum fell short below the 50% Fibonacci retracement level from a swing high of $2,560 to a low of $2,078. The cryptocurrency remains below the critical $2,800 resistance, hindered further by both the 100-day (red) and 200-day (green) simple moving averages.
Potential Scenarios for Ethereum’s Movement
Currently, Ethereum is trading beneath the $2,620 level, indicating a bearish trend. It could find substantial support at $2,250, but failure to maintain this could trigger a slide towards $2,165 or even $2,050. Conversely, any upward move requires overcoming resistance levels at $2,640 and $2,800. Additionally, surpassing $2,820 could initiate a bullish trend aiming for $3,000 and possibly $3,250.
Broader Market Impact
Bitcoin is also under pressure, potentially descending below $60,000. For further insights into trading strategies amidst these fluctuations, Click Here For More Trading tips and strategies.
Important Economic Updates
- Upcoming US ISM Services Index for September 2024 stands at a forecast of 51.7, compared to the previous 51.5. More information can be found on [Investopedia](https://investopedia.com) about ISM index impacts.
- US Initial Jobless Claims have a forecast of 220K, slightly higher than the previous 218K, signaling fluctuations in the labor market. Additional detailed insights are available at [The Balance](https://thebalance.com).