Ethereum has experienced a significant decline starting from the $3,500 resistance zone. The price is currently down by over 8%, signaling a possible continuation towards the $3,120 support level. This downward movement has gained momentum, with ETH trading below $3,400 and the 100-hourly Simple Moving Average. A break below a key declining channel with support at $3,380 on the hourly chart of ETH/USD has further intensified the bearish trend, indicating a potential further decline towards the $3,120 support zone.
The MACD for ETH/USD is gaining momentum in the bearish zone, while the RSI for ETH/USD is now below the 50 zone. These technical indicators suggest a strong bearish sentiment in the market, indicating a high likelihood of continued downward movement in Ethereum’s price. Resistance levels are seen near $3,300, $3,350, and $3,380, with support levels at $3,180, $3,120, and potentially $3,080 in the near term. A breach of the $3,120 support could further push the price towards the $3,020 level, with the next key support level at $2,950.
In the event of a recovery wave, Ethereum’s price could face resistance near the 23.6% Fib retracement level of the downward move from the $3,500 swing high to the $3,183 low at $3,250. The first major resistance level is near $3,300, followed by $3,350 and $3,380. An upside break above the $3,425 resistance could potentially send the price higher towards the $3,500 resistance zone. However, failure to clear the $3,250 resistance might result in continued downward movement, with initial support near $3,180 and the first major support level at $3,120.
Ethereum’s price has been on a downward trend, with bearish momentum gaining strength. The technical indicators point towards a continuation of this trend, with potential support and resistance levels identified for traders to monitor. It is essential for investors to closely monitor the price action and key levels to make informed trading decisions in the volatile cryptocurrency market.
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