Struggling to Break $3,200 Resistance
Ethereum is currently facing challenges in recovering above the $3,200 resistance zone. Even after an attempt to climb above $3,000, the price struggled near $3,280 and began a downward trend. The bears took control, leading to a break below the $3,200 support level. This decline was further confirmed by a breach of a bullish trend line with support at $3,100 on the hourly chart of ETH/USD. As a result, Ethereum is now trading below $3,200 and the 100-hourly Simple Moving Average.
- The price is trading below $3,200 and the 100-hourly Simple Moving Average.
- There was a break below a connecting bullish trend line with support at $3,100 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could start another decline if there is a close below the $3,000 support zone.
Facing Hurdles
Beginning a recovery momentum above $3,000, Ethereum managed to surpass $3,120. Unfortunately, the resistance at $3,280 proved too strong, leading to a high at $3,278 before a downward spiral. Subsequently, the price slipped below $3,200, negating the 23.6% Fib retracement level from its recent high. In addition, the breach of the bullish trend line with support at $3,100 signals a further decline, dragging Ethereum below $3,200 and the 100-hourly Simple Moving Average.
Key Resistance Levels to Watch
- The immediate resistance is near $3,200.
- The first significant resistance level sits at $3,250.
- A key resistance point lies at $3,280.
Potential Upside
In the event of a breakthrough above $3,280, Ethereum could target $3,350, with a major resistance at $3,500, bolstering bullish momentum for Ether.
Anticipating Further Losses
Should Ethereum’s attempts fail to breach the $3,200 resistance, the price may continue its descent, finding initial support at $3,000. Further downside support levels include the $2,900 and $2,820 zones, along with a potential drop to $2,650. An extended bearish scenario could drive Ethereum price towards $2,550.
Technical Indicators Overview
- Hourly MACD: The MACD for ETH/USD leans towards a bearish trend.
- Hourly RSI: The RSI for ETH/USD has descended below the 50 level.
Key Support and Resistance Levels
- Major Support Level: $3,000
- Major Resistance Level: $3,200
Hot Take: Stay Cautious in the Volatile Ethereum Market
As Ethereum grapples with breaking key resistance levels and sustaining recovery momentum, traders and investors should remain vigilant amidst the high volatility in the Ethereum market. Caution is recommended to navigate through the fluctuations and uncertainties surrounding Ethereum price movements.
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