Ethereum is oversold at $3221, which is below the 23.6% Fibonacci retracement level. Market participants await ETH/USD to consolidate near the upper resistance level, the $3,485 mark. This demand zone could provide a decent ask price for joining the bear market.
Ethereum Technical Analysis – 9-January-2025
FxNews—ETH has been in a bear market, below the 50—and 100-period simple moving average and has lost almost 12.0% of its value since January 6. However, the robust selling pressure caused the momentum indicators to step into oversold territory.
As of this writing, the cryptocurrency trades at approximately $3,315, stabilizing below the 23.6% Fibonacci level.
What Do Technical Indicators Reveal?
- The RSI 14 value is 31, stepping outside the oversold territory. This means the bulls are adding bids to the market.
- The Stochastic Oscillator shows 19.0 in the description, indicating an oversold market.
- The Awesome Oscillator histogram is red, below zero, interpreted as a bearish market.
Overall, the technical indicators suggest that while the primary trend is bearish, ETH/USD has the potential to start a consolidation phase, targeting higher resistance levels.
Ethereum is Oversold at $3221: Price Forecast
It is not advisable to join a bear market when it is saturated with selling pressures. Therefore, we suggest waiting for the prices to consolidate near the 38.2% Fibonacci retracement level at $3,485. In this scenario, traders should monitor this Fibo level closely for bearish signals, such as candlestick patterns.
Please note that the outlook of the trend remains bearish as long as the $3,485 resistance level holds.
The Bullish Scenario
The critical resistance area dividing the bull market from the bear market is $3,485. From a technical perspective, Ethereum could target the 50.0 Fibonacci resistance level if bulls pull the prices above $3,485.
Ethereum Support and Resistance Levels – 9-January-2025
Traders and investors should closely monitor the ETH/USD key levels below to make informed decisions and adjust their strategies accordingly as market conditions shift.
| Ethereum Support and Resistance Levels – 9-January-2025 | |||
|---|---|---|---|
| Support | $3,210 | $3,100 | $3,010 |
| Resistance | $3,485 | $3,605 | $3,720 |
