Ethereum faced a major setback as it failed to break through the $3,720 resistance level. This led to a downward trend, pushing the price below $3,650 and the 100-hourly Simple Moving Average. The inability to surpass key resistance levels has put ETH at risk of further losses, potentially dropping below the $3,550 support zone.
ETH attempted to bounce back by surging past the $3,650 resistance, reaching a high of $3,710 before encountering strong selling pressure. The subsequent decline saw the price plummet below $3,660 and $3,650, hitting a low of $3,565. Currently, Ethereum is struggling to recover and is consolidating its losses, mirroring the behavior of Bitcoin.
Despite the challenges, there are key resistance levels that Ethereum must overcome to reverse the downward trend. A bearish trend line near $3,680 poses a significant obstacle, along with the 23.6% and 61.8% Fibonacci retracement levels. Breaking above $3,680 could trigger a bullish momentum, paving the way for a potential rally towards $3,720 and even $3,750. However, failure to surpass the $3,650 resistance may lead to further declines, with initial support at $3,550 and a major support zone at $3,520.
The hourly MACD for ETH/USD is showing bearish signals, indicating a growing momentum in the downward direction. Additionally, the hourly RSI has dipped below the 50 zone, suggesting a bearish sentiment among traders. These technical indicators reflect the current challenges faced by Ethereum in maintaining its price levels and overcoming key resistance barriers.
Ethereum price is at a critical juncture, facing significant resistance levels and the threat of further declines. Traders and investors should closely monitor the market trends and key support levels to assess the potential direction of ETH in the near term. While a breakout above resistance levels could signal a bullish reversal, failure to do so may result in a continuation of the downward trend, with possible support levels at $3,550, $3,520, and $3,500.
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