As the Easter break in many countries has already begun, the majority of equity and commodity markets in the Western countries will be shut today. However, there is an asset class that trades regardless of weekends or holidays – cryptocurrencies! Lower liquidity resulting from closure of more traditional markets combined with higher interest in cryptos in those days can lead to somewhat more wild moves on digital asset markets.
Taking a look at ETHEREUM chart at D1 interval, we can see that this cryptocurrency has experienced a downward correction recently. Drop was halted slightly above the support zone marked with 61.8% retracement of the upward move launched in July 2021 ($2,900 area). An attempt to launch a recovery move was made later. Ethereum traders should focus on Fibonacci retracements of the upward move started in mid-2021 as potential swing levels. The aforementioned $2,900 area remains a key, near-term support and in case it is breached, attention may shift to the lower limit of the Overbalance structure at $2,490. On the other hand, the $3,275 price zone marked with 50% retracement is a key, near-term resistance and breaking above it would pave the way for a retest of the resistance area ranging below the 38.2% retracement ($3,650).