Ethereum Faces Risk of Further Decline Below $3,420 Amid Bearish Trend

• Ethereum’s price encounters difficulty breaking past the $3,650 resistance level.
• Recent market movements put ETH at risk of falling below its current support at $3,420.
• Several technical indicators suggest further potential declines in Ethereum’s value.

Ethereum continues to face downward pressure, as resistance levels remain unbroken and support levels come under threat. Discover the latest trends and insights into ETH’s market movements.

Ethereum Faces Ongoing Resistance

Despite multiple attempts, Ethereum has not managed to initiate a recovery above the critical $3,550 and $3,580 resistance marks, mirroring Bitcoin’s recent struggles. The cryptocurrency has remained in a bearish zone, experiencing dips below the $3,500 threshold.

After dropping past the $3,450 support, Ethereum hit a new low at $3,428. The price then saw a slight recovery, moving above the 23.6% Fibonacci retracement level from the recent fall between the $3,655 high and the $3,428 low.

Currently, Ethereum is trading under both the $3,550 mark and the 100-hour simple moving average. A prominent bearish trend line also looms, with significant resistance near $3,550 on the ETH/USD hourly chart. Should there be another upward attempt, the price is expected to meet resistance around $3,540, aligning with the 50% Fibonacci retracement level of the aforementioned decline.

The first major hurdle is near the $3,550 level and the accompanying trend line. Breaking past this resistance could propel Ethereum higher, with the next significant resistance at $3,650. Surpassing this could lead to a climb towards the $3,720 region.

Potential Downside for Ethereum Prices

If Ethereum continues to struggle against the $3,550 resistance, it may face additional downward pressure. Immediate support on the downside is found near the $3,420 level. A definitive move below this support could pave the way for a decline towards $3,350 and potentially further to $3,250 in the short term.

Technical Analysis:

Hourly MACD – The MACD for ETH/USD is losing its bearish momentum.

Hourly RSI – The RSI for ETH/USD is currently below the 50 level, indicating weaker buyer interest.

Key Support Levels – $3,420 and $3,350

Key Resistance Levels – $3,550 and $3,650

Conclusion

In summary, Ethereum’s price remains under continuous pressure as it faces significant resistance levels while support levels are increasingly tested. Investors should watch for movements around the $3,550 resistance and $3,420 support levels to gauge future price actions. The market sentiment remains cautious, and careful monitoring of the technical indicators is advisable for insights into potential market shifts.