Overview of Ethereum’s Price Movement
As Ethereum attempted a recovery, it faced a setback with a lack of bullish momentum, leading to a decline below the crucial $3,550 support zone. The price is currently trading below both $3,550 and the 100-hourly Simple Moving Average. While a minor correction took place, the overall trend remains bearish for Ethereum.
Struggles with Recovery Attempt
Despite the attempt at a recovery, Ethereum could not sustain momentum and failed to establish stability above the $3,650 level. The subsequent decline saw the price dropping below $3,550, eventually reaching a low near $3,430. The consolidation of losses continues for Ethereum, reflecting a similar trend seen in Bitcoin’s price movement.
- A recovery attempt pushed the price above $3,480, surpassing the 23.6% Fib retracement level of the recent downward move.
- However, resistance looms near the $3,550 level, with the first significant hurdle at $3,570.
- A bearish trend line is forming with resistance near $3,650, indicating a challenging path for Ethereum’s price to move higher.
Potential for Further Decline
If Ethereum fails to overcome the $3,550 resistance level, the price may witness a continued downward movement. Initial support is likely to be found near $3,475, followed by a more significant support zone around $3,430. Any breach below $3,430 could lead to a further decline towards $3,320 and potentially down to $3,250 in the near future.
Technical Indicators to Monitor
- Hourly MACD โ The MACD for ETH/USD shows a loss of momentum in the bearish zone.
- Hourly RSI โ The RSI for ETH/USD has now dipped below the 50 mark, signaling bearish sentiment.
Key Support and Resistance Levels
- Major Support Level โ $3,430
- Major Resistance Level โ $3,550
Hot Take: Stay Cautious as Ethereum Faces Resistance
As Ethereum encounters resistance levels and struggles to sustain a recovery, caution is advised for traders and investors. With key obstacles ahead, including the $3,550 and $3,650 levels, the probability of further downside remains a significant concern. Monitoring the technical indicators and key support levels will be crucial in assessing Ethereum’s price movement in the coming days.
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