In recent trading sessions, Ethereum faced a significant decline in its price, testing the crucial $3,720 support level. Following this decline, ETH is now in a consolidation phase, encountering multiple obstacles around the $3,800 mark. This downward movement suggests a bearish sentiment in the market, similar to what Bitcoin has been experiencing.
A new bearish trend line has emerged with resistance at $3,810 on the hourly chart of ETH/USD, indicating further challenges for Ethereum in its price recovery. Despite bulls defending the $3,720 support zone and the 76.4% Fibonacci retracement level, the price remains below $3,800 and the 100-hourly Simple Moving Average, highlighting the uphill battle for the cryptocurrency.
If Ethereum manages to break above the $3,800 resistance level, it could face additional hurdles near $3,850 and $3,890. A breakthrough above these resistance levels might propel the price towards $3,950 and eventually $4,000. However, failure to surpass the $3,800 resistance could lead to further downward movement, with initial support at $3,720 and a major support zone near $3,640.
A clear break below the $3,640 support level could intensify selling pressure on Ethereum, pushing the price towards $3,550 and potentially even $3,500 in the near term. Technical indicators such as the hourly MACD and RSI suggest a lack of bullish momentum for ETH/USD, raising concerns about its ability to reverse the recent downtrend.
Ethereum is facing significant challenges in its recent price movement, struggling to break above key resistance levels and maintain upward momentum. The emergence of a bearish trend line and the inability to clear the $3,800 hurdle indicate potential further downside for the cryptocurrency. Traders and investors should closely monitor Ethereum’s price action and key support/resistance levels to assess its future trajectory in the volatile cryptocurrency market.
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