After failing to clear the $3,720 resistance, Ethereum has faced another decline, posing a risk of further losses below the $3,550 support zone. The cryptocurrency initiated a fresh decline from the $3,720 resistance area and is currently trading below $3,650 and the 100-hourly Simple Moving Average. The presence of a key bearish trend line with resistance near $3,680 on the hourly chart of ETH/USD indicates a challenging road ahead for Ethereum’s price movement.
Despite an attempt at a decent increase above the $3,650 resistance zone, Ethereum spiked above $3,700 before the bears took control, forming a high at $3,710. The subsequent decline saw prices plummet below the $3,660 and $3,650 levels, hitting a low near $3,565. The current consolidation phase suggests a period of stabilization akin to Bitcoin’s price action. A potential resistance near the 23.6% Fib retracement level at $3,640 and the key bearish trend line at $3,680 could impede any significant recovery in the short term. However, an upside break above the $3,680 resistance level might catalyze a bullish momentum, with the next key resistance at $3,720 indicating a potential upward trend towards the $3,750 level and even the $3,800 resistance zone.
On the flip side, failure to clear the $3,650 resistance could lead to a continuation of downward movement. Initial support is anticipated near the $3,550 level, with further support at the $3,520 zone. The critical support level sits at $3,500, and a breach might propel prices towards $3,320 and potentially even the $3,250 level in the near future.
The hourly MACD for ETH/USD is showing signs of gaining momentum in the bearish zone, underscoring the prevailing downward pressure on Ethereum’s price. Additionally, the hourly RSI for ETH/USD has dipped below the 50 zone, signaling a bearish sentiment among traders and investors.
Ethereum’s price is currently facing resistance at key levels, with potential for both upward and downward movements depending on how the market reacts to these critical price points. Traders and investors are advised to closely monitor the price action and technical indicators to make informed decisions in this volatile cryptocurrency market.
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