Ethereum price is currently facing a significant hurdle in breaking above the $3,840 resistance level. Despite multiple attempts to gain bullish momentum, ETH has failed to clear this key resistance zone. The inability to break above this level suggests a lack of buying interest and potential selling pressure in the market.
The hourly MACD for ETH/USD is indicating a shift towards bearish momentum, further confirmed by the RSI falling below the 50 zone. These technical indicators suggest that the selling pressure might intensify, leading to a potential downward movement in Ethereum price.
The initial support on the downside is near the $3,730 level, followed by a major support zone around $3,700. A clear move below the $3,700 support could expose Ethereum to further losses, potentially pushing the price towards $3,660. On the upside, the $3,840 resistance level remains a critical hurdle that must be overcome for any significant price rally.
If Ethereum manages to break above the $3,840 resistance, it might encounter resistance near $3,900 and $4,000 levels. A successful breach of these levels could pave the way for a rally towards the $4,080 and $4,220 resistance zones. On the other hand, a failure to break above $3,840 could prompt another decline, with the potential for the price to drop towards $3,550 in the near term.
A significant event in the recent price action is the break below a key bullish trend line with support near $3,780 on the hourly chart of ETH/USD. Additionally, Ethereum is currently trading below the 100-hourly Simple Moving Average, highlighting the bearish sentiment prevailing in the market.
Overall, the current price action of Ethereum suggests a struggle to gain bullish momentum and break above key resistance levels. The technical indicators point to a potential shift towards bearish momentum, with key support levels being tested in the near term. Traders and investors should closely monitor the price movement of Ethereum to gauge the potential direction of the market in the coming days.