Ethereum (ETH) price has recently found support at the 0.382 Fibonacci level, around $2,867, prompting a bullish rebound. This development raises the question: does this signal a corrective conclusion?
ETH has undergone a noticeable correction phase over the past few weeks. However, the recent pullback from significant support levels suggests that this trend may be reversing.
Ethereum’s quick recovery from 0.382 Fib support ($2,867)
Ethereum price recently rebounded from the 0.382 Fibonacci support level near $2,867. After the initial pullback, it returned to this support level. However, Ethereum’s rally over the next few days showed a sustained upward trajectory.
Ethereum is encountering major resistance at the 50-day exponential moving average (EMA), around $3,277. Additionally, notable Fibonacci resistance levels are located around $3,320 and he at $3,650. It is important to note that the correction phase is likely to end upon breaking above the golden ratio resistance around $3,650.
A breakout of the parallel descending channel will signal a reversal of Ethereum’s bullish trend. In such a scenario, Ethereum could potentially target or exceed all-time highs around $4,095.
Read more: Ethereum re-staking: what is it and how does it work?
Additionally, the EMA on the daily chart continues to show a golden crossover, indicating a bullish trend in the short to medium term. Moreover, the bullish crossover of the Moving Average Convergence/Divergence Indicator (MACD) line and the upward movement of the MACD histogram in recent days further supports the bullish outlook.
However, the Relative Strength Index (RSI) remains neutral with no indication of bullish or bearish momentum.
Ethereum faces death cross on 4-hour chart
A death cross recently materialized on Ethereum’s 4-hour chart, solidifying short-term bearish momentum. However, if Ethereum maintains its upward momentum and breaks above the 0.382 Fibonacci resistance level near $3,320, the EMA could cause a golden crossover.
Such a development would signal a return to a bullish trend in the near term. Moreover, current indicators lean towards a bullish outlook.
The MACD histogram is on an upward trajectory with a bullish crossover of the MACD line, while the RSI remains in neutral territory.
MACD line bearsish cross on weekly chart
On Ethereum’s weekly chart, a recent bearish crossover in the MACD line and a downward trend in the MACD histogram over the past few weeks suggests that bearish sentiment is prevailing.
Even though Ethereum is down about 30.5% from its peak seven weeks ago, the recent rebound from the 0.382 Fibonacci support level near $2,867 led to a recovery of about 15%.
The continued presence of bullish confirmation from the EMA and neutral position on the RSI indicates that Ethereum's outlook is somewhat optimistic at the moment.
Further appreciation and price recovery for Ethereum seems plausible. However, a significant bullish signal will only emerge if Ethereum crosses the golden ratio at around $3,650.
Ethereum falls 23.7%: Analysis of this month’s decline
So far this month, Ethereum has experienced a decline of around 23.7%, which could indicate the extent of the correction. Moreover, the MACD indicator on the monthly chart does not show any bearish signals.
Rather, the MACD line continues to maintain its bullish stance, while the MACD histogram shows upward momentum and the RSI remains within neutral territory. In the medium term, if Ethereum breaks through the 0.382 Fibonacci support level, key golden ratio support is expected to be around $2,050.
Holding Ethereum above this level is important to maintain the bullish trajectory. However, if Ethereum breaks below this level, we would expect significant support to materialize at the 50-month EMA around $1,860.
Ethereum vs. Bitcoin: ETH’s continued downtrend
Relative to Bitcoin, Ethereum’s price trend remains bearish, with the cryptocurrency finding notable support at around 0.043 BTC. Ethereum is currently within 3.5% of this important support level. Additionally, the MACD histogram is showing a downward trend this month.
Read more: Ethereum (ETH) Price Prediction 2024/2025/2030
The MACD line is already in a bearish cross and the RSI is approaching oversold territory, so the possibility of a bullish rebound in Ethereum at the golden ratio support around 0.043BTC is promising. If this is achieved, Ethereum could face resistance at around 0.05614 BTC at the 50-month EMA.
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