Ethereum’s price recently faced a hurdle at the $3,720 resistance level, failing to break through. This failure resulted in a fresh decline, putting ETH at risk of further losses below the $3,550 support zone. The inability to surpass the resistance could signal a bearish trend in the near future.
Following the rejection at the resistance level, Ethereum started a downward trend from $3,720. The price is currently trading below $3,650 and the 100-hourly Simple Moving Average, indicating a bearish momentum. There is also a key bearish trend line forming with resistance near $3,680 on the hourly chart of ETH/USD, adding to the downward pressure on the cryptocurrency.
If the downward trend continues, Ethereum could experience more losses if it closes below the $3,550 support level. On the upside, there might be a chance for a recovery wave, with the first major resistance at $3,640. Additionally, a break above the $3,680 resistance could signal a potential upward movement, leading the price toward $3,720 and possibly higher levels like $3,750 and $3,800.
However, if Ethereum fails to clear the $3,650 resistance, it might face further downward pressure. Initial support is seen near $3,550, followed by the $3,520 zone and the main support at $3,500. A significant drop below $3,500 could pave the way for a move toward $3,320, with potential losses extending to the $3,250 level in the near term.
Analyzing the technical indicators, the hourly MACD for ETH/USD is currently gaining momentum in the bearish zone, suggesting a continuation of the downward trend. The hourly RSI is also below the 50 zone, further supporting the bearish outlook for Ethereum’s price movement.
Ethereum’s recent price action highlights the challenges faced at the $3,720 resistance level and the potential risks of further downside if key support levels are breached. Traders and investors should closely monitor the price movement and technical indicators to gauge the cryptocurrency’s future direction.
Leave a Reply