Ethereum Price Analysis: ETH Risks Further Declines Below $3,550 Support Zone

  • 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.

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Lucien Renard
Lucien Renardhttps://en.coinotag.com/
Lucien Renard is a 24-year-old writer specializing in cryptocurrency analysis and price action. With a focus on technical analysis, Lucien provides valuable insights into market trends and potential opportunities for investors.
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