Ethereum price has recently experienced a significant decline, starting from the $3,500 resistance zone. The bearish trend has resulted in an 8% drop, with potential for further decline towards the $3,120 support level.
The hourly MACD for ETH/USD is currently gaining momentum in the bearish zone, indicating a strong downward trend. Additionally, the hourly RSI for ETH/USD has dropped below the crucial 50 zone, further confirming the bearish pressure on the price of Ethereum.
Ethereum failed to initiate a bullish rally above the $3,500 resistance zone, leading to a fresh decline. The price has now dropped below $3,400 and the 100-hourly Simple Moving Average. Notably, there was a break below a significant declining channel with support at $3,380 on the hourly chart of ETH/USD. As a result, the pair has even fallen below the $3,200 level, testing a low of $3,183.
In the event of a recovery wave, Ethereum could face resistance near the 23.6% Fib retracement level at $3,250. The first major resistance level is expected near $3,300, followed by a significant hurdle at $3,350. A break above $3,350 could potentially push Ether towards the $3,380 resistance zone.
On the downside, initial support for Ethereum is near $3,180, with the first major support level located at the $3,120 zone. A clear break below $3,150 could further push the price towards $3,080, with the next key support level at $2,950 in the near term.
The bearish trend in Ethereum price is a cause for concern for traders and investors alike. The failure to breach the $3,500 resistance zone has led to a significant decline, with potential for further losses in the near term. It is crucial for Ethereum to find strong support levels and initiate a bullish rally to reverse the current downward trend. As the market dynamics continue to evolve, careful monitoring of technical indicators and price movements is essential for making informed trading decisions.
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