The Ethereum market recently experienced a significant downturn, with its price slipping past the crucial $3,550 mark. This decline has raised concerns among investors and traders, as the cryptocurrency exhibits signs of continued bearish behavior. With the potential for further decreases, Ethereum might soon test lower support levels beyond $3,150.
Key Highlights
- Ethereum showed a downward trend, falling below the critical $3,550 zone.
- The current trading price is under $3,500, trailing the 100-hourly Simple Moving Average.
- A prominent bearish trend line is emerging, presenting resistance around $3,420 on the ETH/USD hourly chart (data sourced from Kraken).
- The pair risks further decline if it cannot maintain its position above the $3,550 support area.
Ethereum Price Dips Under $3,550
Ethereum’s price has faced challenges in initiating a new upward trend beyond the $3,550 level. In parallel with Bitcoin’s downturn, Ethereum expanded its losses, dipping below $3,450 and subsequently beneath $3,300. The decline intensified, pushing the price below $3,220 and momentarily below $3,120. A recent low was recorded at $3,100, and since then, the price has been in a phase of consolidation, registering below the 50% Fibonacci retracement level from the recovery wave with a swing low of $3,100 to a peak of $3,553.
Currently, Ethereum is trading beneath $3,500 and the 100-hourly Simple Moving Average. The bearish trend line, with resistance at $3,420 on the ETH/USD hourly chart, remains a significant force. The pair is currently testing the 76.4% Fibonacci retracement level from the recovery wave between the $3,100 swing low and the $3,553 high. On the upside, Ethereum encounters resistance near the $3,350 level, with the first major barrier positioned around $3,400.
The primary resistance is now forming near $3,420. A successful breach above this resistance could propel the price towards the $3,500 mark. If Ethereum manages to break this barrier, we might witness further gains in upcoming sessions, potentially pushing Ether towards the $3,550 resistance zone or even $3,650.
Potential for Further Losses in Ethereum?
If Ethereum fails to surpass the $3,420 resistance, a downward movement is likely. The initial support on the downside is positioned near the $3,200 level, with the first major support zone appearing around $3,120. Should Ethereum experience a decisive move below this support, the price could be driven towards the $3,050 level. Further losses might see the price nearing the $3,000 support level shortly. The next significant support is situated at $2,880.
Technical Indicators
- Hourly MACD – The MACD for ETH/USD is gaining momentum within the bearish zone.
- Hourly RSI – The RSI for ETH/USD is currently below the 50 mark.
- Major Support Level – $3,120
- Major Resistance Level – $3,420
As the market continues to evolve, staying informed about the latest trend indicators and potential price movements can help investors navigate the volatile landscape of cryptocurrency trading effectively.
