- Ethereum’s price has faced resistance in breaking past the $3,550 mark, leading to a recent downward trend.
- This decline in Ethereum’s price comes amid a broader bearish sentiment in Bitcoin, affecting the overall crypto market.
- A key resistance trend line is noted at $3,465, making it a pivotal point for future price movements.
Ethereum faces downturn as it struggles to sustain gains above the critical $3,550 mark. Will the bearish trend continue?
Challenges in Ethereum’s Price Surge
Ethereum recently encountered significant resistance around the $3,550 level, failing to sustain an upward trajectory. The altcoin has followed Bitcoin’s bearish momentum, slipping below critical support levels. The bears drove the price under $3,420, leading to a consolidation phase around the $3,388 mark.
Currently, Ethereum is finding it difficult to gain traction above the 23.6% Fibonacci retracement level from its recent drop from $3,543 to $3,388. An emerging bearish trend at $3,465 adds further resistance to any upward moves. The hourly chart for ETH/USD shows this resistance explicitly.
Technical Resistance and Market Sentiments
Ethereum’s latest trading patterns reveal its struggles to climb above the $3,500 mark, compounded by the 100-hour Simple Moving Average acting as a resistance. Notably, around the $3,430 price level, Ethereum faces initial resistance, with more substantial barriers near $3,465 and $3,550.
Should Ethereum manage to break these resistance levels, it might pave the way for a bullish trend toward $3,650, with potential to touch $3,720. Continued gains could drive Ether higher, possibly even reaching the $3,880 resistance zone in the following days.
Potential Downward Risks
If Ethereum fails to surpass the significant $3,465 threshold, it could signal further declines. Immediate support is discernible around $3,385, and the first critical support level lies near $3,350. A decisive drop below this could see Ethereum tumbling toward $3,220, with further losses potentially pushing it to the $3,100 level in the short term.
Key technical indicators reflect this bearish sentiment. The hourly MACD for ETH/USD is gaining traction in the bearish region, while the RSI is positioned below the 50 zone, indicating weaker market strength.
Conclusion
The recent market behavior suggests that Ethereum is under pressure to break through several critical resistance levels to avert further declines. With the bearish trend persisting and key support levels at risk, traders should stay vigilant. The $3,465 resistance point remains crucial for any bullish reversal, while supports at $3,350 and below may dictate the short-term trend.
