The price of Ethereum recently failed to break through the $3,720 resistance level, leading to a fresh decline in its value. Currently, Ethereum is at risk of further losses and is trading below $3,650 as well as the 100-hourly Simple Moving Average. A bearish trend line with resistance near $3,680 has formed on the hourly chart of ETH/USD, indicating a possible extension of losses if the $3,550 support level is breached.
Despite attempting a decent increase above the $3,650 resistance zone, Ethereum faced strong selling pressure after reaching a high of $3,710. This resulted in a sharp decline below $3,660 and $3,650 levels, with a low being formed near $3,565. The cryptocurrency is now consolidating its losses and trading below the $3,650 level and the 100-hourly Simple Moving Average. If there is a recovery, Ethereum might encounter resistance near the $3,640 level and the 23.6% Fib retracement level.
In order for Ethereum to experience an upside break, it will need to surpass the $3,680 resistance level, followed by the key resistance at $3,720. A successful breach above $3,720 could potentially propel the price towards $3,750 and beyond. However, failure to break through the $3,650 resistance level could result in further downward movement, with initial support at $3,550 and major support at $3,520. The main support level is situated at $3,500, and a clear move below this level could push the price towards $3,320 and possibly even $3,250 in the near future.
When looking at the technical indicators, the hourly MACD for ETH/USD is gaining momentum in the bearish zone, while the hourly RSI is below the 50 zone. The major support level to watch is $3,550, with the major resistance level at $3,650. Overall, Ethereum is currently facing a challenging market environment, with the potential for both upside and downside movements depending on how key resistance and support levels are breached. Traders and investors should closely monitor these levels to make informed decisions about their Ethereum holdings.
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