- The Ethereum market faces another downturn as recovery attempts above the $3,650 resistance prove futile.
- Recent price movements indicate bearish trends with key resistances preventing any sustainable upward momentum.
- Experts suggest further declines if Ethereum remains below critical resistance levels, with potential significant impacts on market sentiment.
Ethereum price struggles renew bearish perspective; critical resistance levels play a key role in influencing future movements.
Ethereum Price Takes a Hit
Ethereum’s price recently faced resistance, preventing it from stabilizing above the crucial $3,650 mark. This prompted another descent that saw prices dip below the $3,600 threshold.
The cryptocurrency continued its downward trajectory, falling below the $3,550 support. Ethereum’s trading dynamics currently reflect these bearish trends, positioning it below the 100-hourly Simple Moving Average.
In the recent minor correction, Ethereum managed to surpass $3,480, crossing the 23.6% Fibonacci retracement level derived from the $3,710 peak to the $3,430 low.
However, this upward movement faced resistance around the $3,550 mark. The first significant barrier now lies at the $3,570 level, aligning closely with the 50% Fibonacci retracement level from the same swing high to low.
A prominent bearish trend line has also formed, presenting resistance near $3,650 on the hourly ETH/USD chart. A breach of this resistance could potentially elevate prices further, with subsequent obstacles at $3,720 and beyond toward the $3,820 mark.
Potential for Further Declines?
Should Ethereum fail to overcome the $3,550 resistance, it risks further declines. Initial support might be found around the $3,475 level, with major backing near $3,430.
Breaking below $3,430 could precipitate a sharper decline, targeting the $3,320 support zone. Any additional losses might drive prices downward toward $3,250 in the near term.
The technical indicators reinforce this bearish outlook. The hourly MACD for ETH/USD shows diminishing momentum in the bearish zone, while the RSI hovers below the 50 mark.
Conclusion
Ethereum’s current price dynamics suggest ongoing bearish momentum with critical resistance levels shaping future movements. Investors should monitor these levels closely as further declines could significantly impact the market.
