- Ethereum is showing signs of weakness as it trades below the $3,840 support level.
- If Ethereum drops below $3,700, it could potentially enter a bearish phase.
- Key indicators suggest that ETH is facing mounting pressure.
This article provides a detailed analysis of Ethereum’s current market position and its potential future movements.
Ethereum Price Faces Downward Pressure
Ethereum’s price has once again dipped, facing resistance near $3,840. The cryptocurrency has been unable to break through this pivotal level, resulting in a downturn. The $3,850 resistance level stood firm as ETH attempted to recover. The failure to surpass the 50% Fib retracement from the $3,958 peak to the $3,702 nadir presented a significant challenge.
The persistent rejection around $3,800, unlike Bitcoin, exacerbated the decline. Moreover, a key bullish trend line with support at $3,780 was breached on the hourly chart of ETH/USD, compounding the downward pressure. Consequently, ETH is now trading under the $3,840 mark and below the 100-hourly Simple Moving Average.
Resistance Levels and Potential Upside
Despite the bearish outlook, Ethereum can still attempt an upward movement, facing initial resistance at the $3,800 threshold. The primary barrier lies at $3,840, and a successful surge above this could propel the price towards the $3,900 barrier. Further resistance might be encountered around the 76.4% Fib retracement level of the decline from $3,958 to $3,702, setting a target near $4,000.
If bullish momentum persists, Ethereum could test resistance around $4,080. Subsequent gains might drive the price toward the $4,220 zone, offering a more optimistic scenario for traders.
Potential for Further Declines
If Ethereum fails to surpass the $3,840 resistance, the market could see additional declines. The initial support lies at $3,730, below which more pronounced bearish momentum may arise. A decisive drop below $3,700 could drive the price towards $3,660, followed by a potential dip to the $3,550 territory if bearish conditions persist.
Technical Indicators
Several technical indicators point towards a bearish outlook for Ethereum. The hourly MACD is gaining traction in the bearish zone, signaling potential continued declines. The RSI is positioned below the 50 mark, reinforcing bearish momentum. The key support level to watch is $3,730, with resistance remaining firm at $3,840.
Conclusion
In summary, Ethereum is currently experiencing bearish pressure with significant resistance at $3,840. The future price movement of ETH will heavily depend on whether it can break above this resistance or if it continues to face declines below $3,700. Investors should monitor these critical levels and technical indicators to gauge Ethereum’s market trajectory. As always, due diligence and thorough analysis are recommended for making informed trading decisions.
