ETH Price Faces Another Decline
The price of Ethereum has once again descended and tested the $2,900 level, facing challenges to surpass the $3,120 mark and the 100-hourly Simple Moving Average. A bearish trend line has emerged with resistance at $3,120 on the hourly chart of ETH/USD, hinting at a potential continuation of the downward trend if it falls below the crucial $2,850 support.
Struggles to Break Above $3,250
Ethereum price encountered difficulties in gaining momentum to break above the $3,250 threshold, leading to a renewed decline similar to Bitcoin’s trajectory. The digital asset slipped below $3,120, and further downward pressure pushed it beneath $3,000.
- A bottom was established at $2,916, prompting a consolidation phase.
- There was a slight uptick above $3,000, but resistance was observed near $3,000 and $3,020 levels.
- The price tested the 23.6% Fib retracement level, meeting resistance at key levels.
Current Market Situation
Presently, Ethereum is trading below $3,120 and the 100-hourly Simple Moving Average, with immediate resistance hovering around the $3,020 level. The primary hurdle lies at $3,120, where the Moving Average also converges. Additionally, a bearish trend line is forming with resistance at $3,120 on the hourly ETH/USD chart.
- The next significant resistance levels stand at $3,185 and $3,250, pivotal for a potential upwards movement.
- A breakthrough above $3,250 could propel Ethereum towards $3,350 and subsequently $3,500.
- Further gains may push the price to test the $3,620 resistance zone.
Possible Downside Risks
If Ethereum fails to breach the $3,120 resistance, a continuation of the downward trend is likely. Initial support is anticipated near $2,940, followed by a crucial support zone at $2,850. Should the price drop below $2,800, a further decline towards $2,650 could be on the horizon, potentially targeting the $2,540 level in the short term.
Technical Indicators
- Hourly MACD: The MACD for ETH/USD is displaying an increase in bearish momentum.
- Hourly RSI: The RSI for ETH/USD has dipped below the 50 level, indicating a bearish trend.
Major Support Level: $2,940
Major Resistance Level: $3,120
Hot Take: Stay Cautious in ETH Trading
As Ethereum faces a challenging period with ongoing downward pressure, it is imperative for traders to exercise caution and closely monitor key support and resistance levels to make informed trading decisions. The market’s volatility demands a strategic approach to navigate potential risks and opportunities efficiently.
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