The Ethereum price has been facing significant challenges recently, with the cryptocurrency extending its decline and testing the $3,720 support level. This decline has put ETH in a short-term bearish zone, with the price trading below $3,820 and the 100-hourly Simple Moving Average. The bulls have been able to defend the $3,720 support zone, preventing further downside movement for now.
Despite the efforts of the bulls to defend key support levels, Ethereum is now facing multiple hurdles on the upside. There is a new bearish trend line forming with resistance at $3,810 on the hourly chart of ETH/USD, indicating that any upward movement will be met with strong selling pressure. The first major resistance sits at $3,850, with further resistance levels at $3,890 and $3,950. Breaking above these resistance levels would require a significant bullish push from the market participants.
On the downside, if Ethereum fails to clear the $3,800 resistance level, it could resume its downward movement. Initial support is near the $3,720 level, followed by a major support zone at $3,640. A clear break below $3,640 could signal a continuation of the downward trend, with the price potentially dropping towards $3,550 and even $3,500 in the near term.
The technical indicators are painting a mixed picture for Ethereum’s price outlook. The hourly MACD for ETH/USD is losing momentum in the bearish zone, indicating a weakening of selling pressure. However, the hourly RSI is now below the 50 zone, suggesting a lack of strong buying momentum to drive the price higher. These conflicting signals indicate that the price of Ethereum is currently at a critical juncture, with both buyers and sellers vying for control of the market.
Ethereum’s price is facing several challenges as it struggles to break above key resistance levels and maintain support at crucial zones. The outcome of this battle between bulls and bears will determine the short-term trajectory of the cryptocurrency, with potential for both upside and downside movements depending on market sentiment and technical factors.