Ethereum has witnessed a significant downturn in its price recently, starting from the $3,500 resistance level. The downtrend has led to a drop of over 8%, with further potential for a decline towards the $3,120 support zone. This article will delve into the various factors contributing to this price movement and analyze the potential future outlook for Ethereum.
The price of Ethereum is currently trading below $3,400 and the 100-hourly Simple Moving Average, signaling a bearish momentum. A key declining channel with support at $3,380 was breached on the hourly chart of ETH/USD, adding to the downward pressure on the price. The recent decline has seen Ethereum testing the $3,180 level after breaking below the $3,200 support zone. With a low formed near $3,183, there are indications of further losses in the near future.
In terms of resistance levels, Ethereum faces immediate hurdles near the $3,250 and $3,300 levels. A recovery wave could encounter resistance at the 23.6% Fib retracement level, followed by major hurdles at $3,350 and $3,380. The ultimate target for the bulls remains the $3,500 resistance zone. However, failure to breach the $3,250 resistance level could result in continued downside movement for Ethereum.
On the downside, Ethereum has initial support near $3,180, with a major support zone at $3,120. A clear break below $3,120 could pave the way for further losses towards $3,080 and potentially even the $3,020 support level. The next crucial support stands at $2,950, highlighting the importance of these key price levels in the current market scenario.
The hourly MACD for ETH/USD is showing momentum in the bearish zone, indicating a strong selling pressure on Ethereum. Similarly, the hourly RSI has dipped below the 50 zone, pointing towards a negative sentiment among traders. These technical indicators support the current downtrend in Ethereum’s price and suggest caution for investors in the short term.
The recent price movement in Ethereum has been largely influenced by the failure to breach the $3,500 resistance level. The bearish momentum has intensified, with key support and resistance levels guiding the future trajectory of Ethereum. Traders and investors should closely monitor these levels and technical indicators to navigate the volatile cryptocurrency market successfully.