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Ethereum might drop below a crucial price level, especially if the historical support level does not hold. For now, Ethereum is moving at the $3,760 price level, with support at $3,720. In case of a drop below the aforementioned support, the 26 EMA is the next level for a bounce.
Potential volatility is indicated by Ethereum's current price action. Since the $3,720 support level has already been put to the test multiple times, bulls must protect it. The 26 EMA, which is currently at $3,568, is the next major support if this level is broken.
It will be carefully observed if this moving average can offer support, as it has in the past during corrections. The signals from the technical indicators are conflicting. The fact that the RSI is circling 62 indicates that ETH is not yet in overbought territory, but more downside is possible before oversold levels are reached.
The low volume, on the other hand, suggests that there is not much buying interest to drive prices higher. Additionally, it is generally regarded as a bearish signal that Ethereum has been moving in a consolidation for more than a week. This implies that there may be a slowing of the recent upward momentum.
In comparison to other cryptocurrencies, Ethereum has performed rather well, considering the larger market environment. External variables though, like news about an ETF or notable changes in the price of Bitcoin, might have an effect. However, the market is relatively bullish, which could be beneficial to ETH.