However, further downsides could be seen if the $3,500 proves to serve as resistance again.
ETHUSD ABC completed | Credit: Nikola Lazic/TradingView
In that case, the price would fall to some lower Fib levels at 0.5 and 0.618 Fibonacci retracement, around $3,209 and $3,004.
The daily Relative Strength Index (RSI) is approaching neutral territory, indicating that the market sentiment is neither overbought nor oversold, allowing for potential continuation or further consolidation.
If the price breaks below the 0.618 retracement, further downside toward the 0.786 level at $2,713 is possible.
Key observations
Ethereum has recently faced a correction after a strong rally.
If the support breaks, the Price could decline to 0.618 or 0.786 retracement levels.
ETH Price Prediction
The hourly Ethereum chart shows a strong upward move after likely completing a corrective phase.
The current price structure suggests the development of an impulse wave with the potential for a continued rally.
The price tests its prior high, which is now a resistance.
ETHUSD At Prior High After A Descending Trendline Breakout | Credit: Nikola Lazic/TradingView
If the price breaks above this resistance, the next key level to watch is $3,666.
Should the market sentiment remain bullish, this area could push upward further.
However, should the price exceed $3,666, support levels around $3,413 (0.382 Fibonacci) and $3,209 (0.5 Fibonacci) would become significant.
The RSI is moving upwards, suggesting that there is still room for further bullish momentum.
A breakout above $3,666 could trigger an acceleration toward $3,900. Still, a failure to maintain price action above this zone may lead to a retest of lower support levels, such as $3,209.
Key levels to watch
Resistance at $3,666 (0.236 Fibonacci).
Support around $3,413.6 (0.382 Fibonacci).
Key support at $3,209.2 (0.5 Fibonacci).
Potential strong support near $3,004.7 (0.618 Fibonacci).
Upward target is around $3,900.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
Nikola Lazic is a cryptocurrency analyst and investor working in the industry since 2017. He holds a bachelor's degree in Sociology, which enables him to better understand the psychology behind the crowd´s positioning. Consequently his preferred analytical tool is Elliott Wave Theory in combination with price action analysis.
Combining his experience in trading and investing with knowledge in content writing he strives to bring the most accurate and actionable information.
