The post Ethereum (ETH) Faces Volatility Amid Death Cross and Key Fibonacci Levels Testing appeared on BitcoinEthereumNews.com.

Ethereum [ETH] has been battling significant price drops, pushing it well below the $3,000 mark. The cryptocurrency has recently attempted a bounce-back rally. However, Ethereum’s daily active addresses have consistently stayed above 400,000. Explore the current state of Ethereum (ETH), its recent price movements, and what key technical indicators may suggest for the future. Ethereum Faces Continued Price Pressure Ethereum has been experiencing a tough period over the last few weeks, with its price declining sharply. Despite a rally that saw a 14.56% increase on 8 August, ETH couldn’t hold above the critical $3,000 level. As a result, volatility might be on the horizon for the cryptocurrency. Technical Indicators Signal Bearish Sentiment One of the most alarming signs for Ethereum has been the appearance of a death cross in its technical charts. This formation indicates long-term bearish trends. On 9 August, after a further drop of 3.10%, ETH’s price fell to around $2,601, confirming the death cross. This crossing over of short-term moving averages below long-term ones often signifies extended bearish periods. Analyzing the Momentum The Moving Average Convergence Divergence (MACD) indicator paints a grim picture as well, with the MACD line below the signal line, indicating negative momentum. Nonetheless, a closer look at the MACD histogram suggests that the bearish trend might be weakening as the negative bars are lessening in effect, hinting at a potential market reversal soon. Probable Scenarios Based on Fibonacci Retracement Using the Fibonacci Retracement tool, Ethereum’s price movements present several scenarios. Currently, ETH is challenging the 0% Fibonacci level at approximately $2,589.77. Should the price sustain above this mark, next resistance could be at $2,870.67 (38.6% retracement) and $2,953.64 (50% retracement). Successful advancement beyond the 50% level may point to a further rally towards $3,039.51 and potentially higher. Possible Downside Risks However, should Ethereum…

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Filed under: News - @ August 11, 2024 6:04 am