- Ethereum’s price dropped once again, unable to surpass the $3,650 resistance mark.
- The cryptocurrency saw a decline following the Federal Reserve’s recent decision, further entrenching its bearish stance below the $3,550 level.
- A notable bearish trend line has emerged, presenting resistance around the $3,610 mark, which significantly influences ETH/USD trading.
Ethereum struggles to maintain upward momentum, showing bearish indicators below $3,550 amid market reaction to Fed’s decision.
Ethereum Price Faces Renewed Turbulence
Ethereum’s price encountered a formidable barrier at $3,650, resulting in a fresh wave of declines. This retreat saw the cryptocurrency fail to sustain levels above $3,550 and $3,580. Despite isolated attempts to recover, bearish pressures prevailed, with ETH dropping in tandem with Bitcoin.
Further evidence of the decline is demonstrated by a fall below the $3,550 support and the 61.8% Fib retracement, taken from a recent upward swing between $3,431 and $3,655.
Forming Bearish Trends
Currently, Ethereum is positioned below the $3,550 threshold and the 100-hourly Simple Moving Average. The hourly chart reveals a bearish trend line with resistance near $3,610, making it a pivotal point for any recovery attempts.
Immediate resistance persists around the $3,580 and $3,600 marks, with a potential for significant price movements if these levels are breached. A successful climb above $3,600 could pave the way to $3,650, with further bullish momentum possibly driving the price towards $3,720 and beyond.
Potential for Further Declines
Should Ethereum fail to break above the $3,600 resistance, it risks additional declines. Initial downside support surfaces around $3,480, aligned with the 76.4% Fib retracement of the recent recovery from $3,431 to $3,655.
Substantial support is observed near the $3,420 level. A decisive drop below this point could accelerate declines towards the $3,320 level. Sustained losses might even drive Ethereum’s price down to $3,250 in the short term.
Technical Factors to Watch
The hourly MACD for ETH/USD is gaining strength in the bearish zone, suggesting persistent downward momentum. Additionally, the RSI stands below the 50 level, underscoring the prevailing bearish trend.
Critical support levels are at $3,420, while major resistance remains at $3,600, which will be crucial for traders to monitor.
Conclusion
In summary, Ethereum’s price action reflects a struggle to maintain upwards momentum, heavily influenced by external economic factors such as the Federal Reserve’s decisions. Key resistance and support levels will be vital indicators of the cryptocurrency’s direction in the immediate future, with bearish trends currently dominating the landscape.
