Overview: Ethereum Price Facing Downside Pressure
Ethereum is currently facing downward pressure as it failed to initiate a recovery above key resistance levels. The price has declined below $3,000 and the 100-hourly Simple Moving Average, indicating a bearish trend. Despite potential corrective movements, the upside may be limited, with key resistance levels around $2,950 and $3,000.
Challenges in Price Recovery
- Ethereum struggled to surpass $3,080 and $3,120 resistance levels.
- A subsequent decline led to a breach of the $3,000 support zone.
- Support levels at $2,950 and $2,920 were also broken.
- A 6% decline saw the price test the $2,820 support level.
Current Price Action and Analysis
Following the dip to $2,825, Ethereum is now consolidating its losses. The bearish trend is evident in the price action, with tests at key resistance levels. Additionally, the formation of a bearish trend line near $2,950 highlights the challenges for ETH/USD on the hourly chart.
- The 23.6% Fib retracement level indicates resistance levels.
- A potential recovery wave might face hurdles around $2,920 and $2,950.
- A significant resistance lies at the $3,000 level.
- Breaking above $3,000 could propel the price towards $3,080 and $3,120 resistances.
Possible Scenarios for ETH Price Movement
If Ethereum fails to breach the $2,950 resistance, further downside movement is likely. Initial support at $2,820 may lead to tests at the $2,800 level. A decisive drop below $2,800 could escalate the decline towards $2,720 and even $2,650 in the short term.
Technical Indicators Overview
- Hourly MACD: Shows momentum in the bearish zone for ETH/USD.
- Hourly RSI: Indicates a position below the 50 zone for ETH/USD.
Key Levels to Watch
- Major Support Level: $2,820
- Major Resistance Level: $2,950
Hot Take: Be Cautious Amid Ethereum’s Bearish Trend
As Ethereum faces downward pressure and struggles to overcome key resistance levels, it’s essential to exercise caution when assessing potential trading opportunities. Monitoring price movements around $2,950 and $3,000 will be crucial in determining future ETH price actions.
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