Understanding Ethereum’s Bearish Movement
As an avid follower of the cryptocurrency market, you have observed Ethereum’s consistent downward trend, staying below the $3,120 mark and mirroring Bitcoin’s behavior. Ethereum’s price plummeted beneath the $3,000 level, reaching as low as $2,813 before entering a consolidation phase. Despite a slight uptick to surpass $2,900, the bears maintained control, resisting price movements at $2,950 and $2,965.
Currently, Ethereum is trading below $3,000 and the 100-hourly Simple Moving Average, encountering immediate resistance around $2,965. A more significant hurdle lies at the $3,050 level, coinciding with the 100-hourly SMA. Additionally, a bearish trend line is forming at $3,050 on the hourly chart of ETH/USD, closely aligned with the 50% Fib retracement level from the recent downward swing.
Potential for Further Declines in Ethereum
If Ethereum fails to breach the $3,050 resistance barrier, the cryptocurrency may see a continued downward trajectory. Initial support is anticipated around $2,850, with a critical support level resting at $2,820. A decisive break below $2,820 could push Ethereum’s price towards $2,650, potentially leading to further losses towards the $2,540 mark.
Technical Indicators
- Hourly MACD: The MACD for ETH/USD indicates a strengthening bearish momentum.
- Hourly RSI: ETH/USD’s RSI has dipped below the 50 threshold, signaling a bearish sentiment.
Considering these indicators, Ethereum faces a significant challenge in surmounting the $3,050 barrier to initiate a bullish trend. Failure to do so may result in continued downward pressure, potentially testing lower support levels.
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