The Ethereum price recently made an unsuccessful attempt to break through the $3,520 resistance zone, resulting in a fresh decline. Subsequently, ETH dropped below the $3,250 support level and even tested the $3,150 zone.
Looking at the hourly chart of ETH/USD, it is evident that the price is currently trading below $3,250 and the 100-hourly Simple Moving Average. Additionally, a key bearish trend line is forming with resistance near $3,325. This indicates that there are significant challenges for Ethereum in terms of overcoming resistance levels.
The recent decline in Ethereum’s price was triggered by the failure to surpass the $3,450 and $3,420 resistance levels. This led to another drop below the $3,320 support zone, similar to the movement observed in Bitcoin. The price further declined below both the $3,250 and $3,220 support levels, resulting in a 5% decrease and a test of the $3,150 support level.
While there is a possibility of a corrective move to the upside, it is likely to be limited above the $3,320 zone. Ethereum’s price is currently testing the 23.6% Fib retracement level from the recent downward move. In case of a recovery wave, resistance levels to watch out for include $3,250, $3,300, and $3,365. A close above the $3,365 level could potentially lead Ether towards the $3,450 resistance, followed by $3,500 and $3,550.
On the other hand, if Ethereum fails to clear the $3,320 resistance level, it could face further downward pressure. Initial support on the downside is near $3,200, followed by a major support zone around $3,150. A clear break below $3,150 could potentially push the price towards $3,080, with additional losses targeting the $3,050 level in the near future.
Taking a closer look at the technical indicators, the MACD for ETH/USD is currently gaining momentum in the bearish zone, indicating a potential continuation of the downward trend. Additionally, the RSI for ETH/USD is now below the 50 zone, further confirming the bearish sentiment in the market.
Ethereum’s price struggles continue as it faces challenges in breaking through key resistance levels. The upcoming price movements will depend on the ability to overcome these hurdles and potential support levels in case of further declines.
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