Ethereum reached a new minimum at the price of $2,628. So, today the price may reach one more minimum around the spot of $2,584, which coincides with the ratio of 38.2% Fibonacci retracement levels.
Today, Ethereum is challenging the psychological resistance at $2,718 (50% Fibonacci retracement levels).
Hence, the resistance is seen at the level of $2,718 in the four-hour time frame. We expect Ethereum will continue moving in a downtrend below the level of $2,718.
Downtrend scenario :
On the downside, the $2,418 level represents support. The next major support is located near the $2,151, which the price may drift below towards the $2,718 resistance region.
The volatility is very high for that the ETH/USD is still moving between $2,718 and $2,151 in coming hours.
Consequently, the market is likely to show signs of a bearish trend again. Therefore, it will be good to sell below the level of $2,718 with the first target at $2,418 and further to $2,151 in order to test the daily support.
However, if the ETH/USD is able to break out the daily support at $2,230, the market will decline further to $2,230 to approach support .
Alternative scenario :
Uptrend scenario :
An uptrend will start as soon, as the market rises above resistance level $2,584, which will be followed by moving up to resistance level $2,654. Further close above the high end may cause a rally towards $2,718. Nonetheless, the weekly resistance level and zone should be considered.
Trading recommendations - ETH/USD :
The trend is still bearish as long as the price of $2,718 is not broken. Thereupon, it would be wise to sell below the price of at $2,718 with the primary target at $2,584. Then, the ETH/USD pair will continue towards the second target at $2,418 (a new target is around $2,230). The breakdown of $2,230 will allow the pair to go further down to the price of $ 2,150.
