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Is Ethereum Price Showing Signs of Bullish Exhaustion? Bullish Momentum May Determine Outcome for the Week

Key Takeaways:

Ethereum is experiencing difficulty in surpassing the $3,300 resistance zone.

ETH/USD remains above an important parabolic curve, with current support at $3,000 on the weekly chart.

If there is a weekly close below $3,000, the price could face a significant decline.

New Delhi (CoinChapter.com): Ethereum (ETH) is facing challenges in gaining bullish momentum above $3,300, with a potential sharp decline if the bears manage to push the price below $2,900-$3,000.

Ethereum Price on the Verge of a Critical Moment

In the previous weekly analysis, the significance of the $2,900 support for Ethereum was discussed. ETH price has managed to stay above the $2,900 support zone and recently attempted a recovery wave, similar to Bitcoin. There was a slight increase above the $3,050 and $3,150 levels.

Nonetheless, the bears were active around the $3,250 and $3,300 levels. A sharp decline below the 50% Fib retracement level of the upward move from the $2,172 swing low to the $4,082 high was observed earlier. The price tested the $2,900 support and entered a consolidation phase.

Ethereum price weekly chart | Source: ETH/USD on TradingView.com

The bulls are displaying resilience near the $2,900 and $3,000 support levels. Moreover, Ethereum remains above a crucial parabolic curve with current support at $3,000 on the weekly chart.

The last two candles suggest a potential bullish exhaustion pattern. In that context, the bears would need a weekly close below the parabolic curve, the $2,900 support zone, and the 61.8% Fib retracement level of the upward move from the $2,172 swing low to the $4,082 high.

Should Ether drop below the $2,900-$3,000 support zone, a significant pullback could occur. In such a scenario, the bears might target a move towards the $2,620 support zone. The subsequent major support is near the 50-week simple moving average (blue) at $2,200.

Possibility of a New Rally in ETH?

Conversely, Ethereum could sustain strength above the curve support and make another upward move. Immediate resistance is around the $3,250 level, with the first major resistance at $3,300. A successful breach of the $3,300 resistance could pave the way for a move towards the $3,630 resistance.

The next critical resistance level could be $3,880. A closure above the $3,880 level might trigger a move towards the $4,000 resistance. Further gains could push the price towards the $4,400 level in the upcoming weeks.

In conclusion, Ethereum price is displaying some bearish signals below $3,300. Failure by the bulls to maintain a weekly close above $2,900 could lead to further losses towards $2,200. Conversely, the price could embark on another upswing towards $3,630 in the coming weeks.



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