Ethereum bulls rally as ETH reverses course 🚀 Can they save the day? 🌟

Summary: Ethereum Faces Downtrend as Price Dips Below $3,400

Despite attempting to surpass the $3,520 zone, Ethereum has entered a downside correction. Currently trading below $3,400 and the 100-hourly Simple Moving Average, the cryptocurrency is at risk of further declines. A key bearish trend line with resistance near $3,410 has formed on the hourly chart of ETH/USD, indicating a challenging road ahead for Ethereum.

Downtrend in Ethereum Price

Following a failed attempt to climb above $3,520 and $3,550 resistance levels, Ethereum experienced a retracement, similar to Bitcoin. The price dropped below $3,450 and $3,420 support levels, with bears pushing it below the 50% Fib retracement level of the recent upward wave.

The downward movement suggests a potential drop below the $3,350 support zone.
Currently trading below $3,400 and the 100-hourly Simple Moving Average.
The resistance near $3,400 could limit any recovery attempts for Ethereum.
A key bearish trend line with resistance near $3,410 poses a significant challenge for bulls.

Potential for Further Losses in ETH

If Ethereum fails to overcome the $3,410 resistance, downward pressure may persist. Initial support is seen near $3,365, with a crucial support level at $3,350. A breach below $3,350 could open the doors for a drop towards $3,250 and potentially $3,120 in the short term.

Technical Indicators and Price Levels

Hourly MACD – The MACD for ETH/USD shows increasing bearish momentum.
Hourly RSI – The RSI for ETH/USD has dipped below the 50 zone, indicating a shift in sentiment.
Major Support Level – $3,350
Major Resistance Level – $3,435

Hot Take: Stay Cautious as Ethereum Prepares for Potential Declines

As Ethereum faces resistance near $3,410 and struggles to maintain price levels above $3,400, traders should exercise caution. The formation of a bearish trend line and technical indicators signaling bearish momentum suggest a challenging path ahead for Ethereum. Keep a close eye on key support levels to gauge the cryptocurrency’s next moves in the market.