The recent price action of Ethereum has been disappointing for bulls as the digital asset failed to recover above the $3,650 resistance level. This failure resulted in ETH declining below the $3,550 support zone, indicating bearish signs below $3,600. The inability to break above key resistance levels has left investors and traders concerned about the future direction of Ethereum.
One of the concerning factors is the formation of a key bearish trend line with resistance near $3,650 on the hourly chart of ETH/USD. This trend line signifies the strong selling pressure that Ethereum is currently facing and highlights the challenge of breaking above critical resistance levels. The failure to breach this trend line could lead to further downside for Ethereum.
With Ethereum trading below $3,550 and the 100-hourly Simple Moving Average, there is a looming risk of extended losses if the price fails to hold above the crucial support levels. The recent consolidation near the $3,430 level raises concerns about the possibility of a continued downtrend, similar to Bitcoin’s price action.
In the event of a bullish reversal, Ethereum could face resistance near the $3,550 and $3,570 levels. Breaking above these levels might pave the way for a potential rally towards $3,720 and possibly even $3,820. However, the presence of strong resistance levels and bearish trend lines suggests that any upside movement would require significant buying pressure.
On the downside, Ethereum has initial support near $3,475, followed by a major support zone around $3,430. A clear move below the $3,430 support level could signal further downside towards $3,320 and potentially $3,250 in the short term. The lack of strong support levels raises concerns about the sustainability of Ethereum’s current price levels.
The Hourly MACD for ETH/USD is showing signs of losing momentum in the bearish zone, indicating weakening buying pressure. Additionally, the Hourly RSI is now below the 50 zone, suggesting a shift towards bearish sentiment among traders and investors.
Ethereum’s recent price decline and inability to break above key resistance levels highlight the challenges the digital asset is facing in its attempt to regain positive momentum. The presence of strong resistance levels, bearish trend lines, and weakening technical indicators suggest that Ethereum could be in for further downside if it fails to hold above crucial support levels in the near term. Investors and traders should closely monitor price movements and key levels to assess the potential for a sustained recovery or extended losses in the coming days.