Ethereum just hit a pretty solid roadblock at the 0.618 Fibonacci retracement level. Having tried and failed to break through, ETH is now sitting below the point of control (POC), with traders nervously wondering: is it headed for a further decline, or is this a classic Ethereum fakeout?
ETH has stalled out at the 0.618 Fibonacci level, which, let's be real, is kind of a big deal to traders. It's not like some arbitrary number; this level is accompanied by daily resistance and a falling VWAP, the perfect storm of hurdles for Ethereum. Following several failed attempts to make it higher, ETH has fallen back below the POC, indicating that the sellers may finally be gaining the upper hand.
What's Going On With Ethereum?
Ethereum has been running into a brick wall at the 0.618 Fibonacci level, upheld by horizontal resistance and a downwards-trending VWAP.
Price trading below the POC is a warning sign, as it signals that sellers are taking the upper hand in the short-term tug of war.
Bearish Sentiment on the Horizon? ETH can't seem to be making any higher highs, and with those pesky lower highs making an appearance, it's starting to feel like a trip down to $1,540 is on the cards.
The Lowdown on Ethereum's Price Action
ETH has been battling the 0.618 Fibonacci level, and let's just say it's not having a lot of success in pushing through. This level is especially important, not just because of its Fibonacci magic, but also because it matches up with daily resistance and a VWAP that's been dropping off steadily. Combine those two factors, and it's no wonder ETH has run into some serious selling pressure.
What’s even more concerning is ETH’s recent dip below the point of control (POC). This key level, where the most trading volume has happened, usually signals a shift. When price falls below it, it’s like the market is saying, “Nah, we’re good,” rejecting these price levels and hinting at a move lower.
Ethereum's graph is also showing a bit of bearishness. The failure to register higher highs and the formation of lower lows suggests the bulls may be losing steam. Where's the next stop in the potential downfall? $1,540. Not just any price level, but a level with historical significance and price inefficiencies to further pull the price down.
That would make a possible 10% drop imminent, especially if the current swing low won't hold. Don't count ETH out just yet, though, naturally—this coin has a history of making a dramatic turnaround from the same levels.
So, What's Next for Ethereum?
If Ethereum is unable to penetrate the 0.618 Fibonacci level and falls beneath the point of control, a downturn becomes increasingly likely. If ETH breaks beneath the recent swing low, the $1,540 level of support could become relevant.
But wait for it, if buyers can mount a strong comeback and reclaim the POC, then it could be a sassy fakeout, and Ethereum will reverse and continue higher. Either way, it's clear ETH is at a crossroads, so traders need to be on their toes for the next move.
HODL Team
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