As Ethereum continues its journey through volatile market conditions, expert analysis and AI-driven predictions offer valuable insights into the future direction of ETH. According to recent predictions from market analysts like Itai Levitan, Ethereum has experienced significant price movements, with buyers recently pushing the price above $3,550.
However, for sustained bullish momentum, Ethereum must hold key support levels and break through resistance zones.
Current Price Action and Key Support Levels
At the time of writing, Ethereum futures are consolidating at a price of $3,693. For Ethereum to maintain upward momentum, it is crucial for the price to remain above the critical support level near $3,646.5.
This price zone is significant because it aligns with the Volume Weighted Average Price (VWAP), Point of Control (POC), and the Value Area Low (VAL) from previous trading sessions.
Bullish Targets and Resistance Levels
Should the price hold above this critical support, Ethereum could see a continued bullish trend with potential resistance targets at $3,784 (December 11 Value Area Low) and $3,797 (Yesterday’s VWAP). Further gains could push the price toward $3,870.5, a key resistance level identified as a potential price magnet.
The long-term bullish targets for Ethereum could extend as high as $3,962.5, $4,017.5, and $4,071, as indicated by extended price targets based on the current trend.
Bearish Outlook and Potential Downside
However, if Ethereum fails to hold support at $3,646.5, the market may experience a reversal toward downside targets. A break below this level could push Ethereum toward $3,553, with a potential deeper retracement to $3,327 if the selling pressure intensifies.
Conclusion and Strategy for Ethereum Traders
While Ethereum’s current outlook is slightly bullish, traders should stay vigilant and closely monitor the key levels outlined above. A sustained break above $3,700 could signal further bullish momentum, but any price action beneath $3,646.5 could trigger a significant downside.
Traders should adjust their strategies accordingly, managing risk while keeping an eye on market developments.
For further insights into the crypto world, be sure to check out our previous article on SEC Approves First Hybrid Bitcoin-Ethereum ETFs to understand the growing institutional adoption of cryptocurrencies.
