Ethereum’s price had difficulty breaking through the $3,720 resistance level and has since started to decline again, putting it at risk of falling below the $3,550 support zone. The price is currently trading below $3,650 and the 100-hourly Simple Moving Average, with a key bearish trend line forming near $3,680 on the ETH/USD hourly chart.
After attempting an increase above $3,650 and reaching as high as $3,710, Ethereum’s price saw a sharp decline below $3,660 and $3,650. It currently sits near $3,565 and is consolidating losses. In the event of a recovery, the price may encounter resistance near the 23.6% Fib retracement level at $3,640, with a major obstacle at the $3,680 resistance level along with the trend line.
A break above the $3,680 resistance could potentially push the price higher towards $3,720, and further gains might see Ethereum testing the $3,750 and $3,800 levels. However, failure to surpass the $3,650 resistance could lead to further losses, with initial support at $3,550 and major support at $3,520 and $3,500. A drop below $3,500 could result in a move towards $3,320 and potentially even $3,250 in the short term.
On the technical side, the MACD for ETH/USD is showing bearish momentum on the hourly chart, while the RSI has dropped below the 50 zone. The major support level to watch is $3,550, while the major resistance level stands at $3,650. Traders and investors will need to monitor these levels closely to gauge the direction of Ethereum’s price movement in the coming days.
In conclusion, Ethereum’s price is facing challenges in breaking key resistance levels and may be vulnerable to further losses if it fails to clear the $3,650 barrier. While a potential recovery could see the price climbing towards $3,720 and beyond, a lack of bullish momentum could result in a downward trend towards $3,500 and lower. Traders should keep a close eye on the support and resistance levels mentioned to make informed decisions in the volatile cryptocurrency market.
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