- The Ethereum price experienced a downturn after failing to surpass the $3,720 resistance level.
- Key supports are under pressure, increasing the risk of further declines below the $3,550 threshold.
- Bearish trends and crucial indicators suggest a cautious outlook for Ethereum’s immediate future.
Ethereum faces renewed bearish pressure as it struggles to break critical resistance levels.
Ethereum Price Faces Continued Downward Trend
Ethereum attempted to breach the $3,650 resistance area but was met with renewed selling pressure. Despite a momentary spike above $3,700, the momentum faltered as sellers took control. The cryptocurrency saw a rapid decline, falling below both $3,660 and $3,650 marks.
Subsequently, Ethereum registered a low near $3,565 and is currently trying to consolidate its losses. It continues to trade below the $3,650 level and the 100-hourly Simple Moving Average.
Resistance Levels and Trend Line Analysis
If Ethereum attempts another recovery, it is likely to encounter resistance around the 23.6% Fibonacci retracement level of the recent downtrend from the $3,710 high to the $3,565 low. The initial significant resistance stands around the $3,640 mark.
Moreover, a bearish trend line is emerging with resistance near $3,680 on the ETH/USD hourly chart. This trend line is aligned closely with the 61.8% Fibonacci retracement level of the downward movement from the $3,710 high to the $3,565 low.
An upward break above the $3,680 resistance could drive the price higher, with the subsequent resistance at $3,720. A move beyond $3,720 could pave the way toward $3,750 and potentially $3,800. Any additional gains might propel Ethereum to the $3,880 resistance zone.
Potential for Further Declines
Should Ethereum fail to overcome the $3,650 resistance, the potential for further declines remains. Initial support can be anticipated near $3,550, quickly followed by significant support around the $3,520 mark.
The primary support level stands close to $3,500. A decisive break below this level could trigger a decline toward $3,320, with further losses possibly extending to the $3,250 area in the near term.
Technical Indicators:
- Hourly MACD – The MACD for ETH/USD is picking up pace in the bearish zone.
- Hourly RSI – The RSI for ETH/USD is now below the 50 level.
- Major Support Level – $3,550
- Major Resistance Level – $3,650
Conclusion
Ethereum’s price trajectory appears precarious with mounting bearish pressures and key support levels being tested. The ability to break through resistance at $3,650 and $3,680 will be crucial for a bullish reversal. However, failure to do so could expose the cryptocurrency to further declines, making close monitoring of support levels essential for traders and investors.
