Ethereum’s price is currently undergoing a correction, which started in early December. The price appears to be heading towards a key support range between USD 2,400 and USD 2,840. Although this step may unfold in multiple phases, there is a chance that the correction will end sooner than expected. At the time of writing, Ethereum is down more than one percent and is trading below the $3300 level.
Key resistance and support levels
The trend is bearish as long as Ethereum remains below the resistance zone between $3,370 and $3,613. A break below $3,170, Thursday’s low, would likely signal further downward movement. If Ethereum manages to move higher within the resistance area, it could indicate that a bigger pullback is brewing.
Alternative scenario: potential upside breakout
There is an alternative scenario to consider, where the current price action could form a triangular pattern, potentially leading to a breakout to the upside. While this is less likely, it is worth keeping an eye on as it could have positive implications for Ethereum.
Looking ahead: possible path to new highs
Despite the short-term downward trend, the overall upward trend remains intact. If Ethereum quickly finds support and begins to stabilize, it could pave the way for a stronger rally towards new all-time highs. Watch for signs of a price bottom as this could signal the next upward move.