Ethereum has faced a sharp decline, dropping beneath $3,680 and currently trading below $3,550. The cryptocurrency has been grappling with some serious bearish momentum, particularly as it finds itself beneath a significant resistance level at $3,650 on the hourly chart.
After a tumultuous session, Ethereum reached a troubling low of $3,324, with major support now established at around $3,320. Technical indicators, such as MACD and RSI, are suggesting that this bearish trend might not waver anytime soon. For any hope of recovery, a break above multiple resistance levels will be necessary, with $3,715 being particularly crucial.
The recent price action paints a clear picture of Ethereum’s struggle as it fell below several critical support levels. Yep, it’s not just a bad hair day for the leading altcoin; it’s more of a bad hair week, as Ethereum has experienced a 7% drop, currently hovering below $3,550. The trouble began when the cryptocurrency couldn’t maintain its position above $3,680, leading to a cascading effect of support breaks. This downward slide aligns with the broader market sentiment, as Bitcoin is feeling the heat as well.
According to trading data from Kraken, Ethereum has slipped below the 100-hourly Simple Moving Average, indicating that the bears have taken control. The sharp decline confirmed that traders need to buckle up, as Ethereum’s price plunged to $3,324, showcasing a significant shift from its recent trading ranges.
On the hourly chart, a notable bearish trend line has emerged, with resistance firmly positioned at $3,650. This indicates that any recovery attempts will face fierce selling pressure, adding to the dramatic saga unfolding in the Ethereum market.
Currently, Ethereum is consolidating around the $3,510 level, which corresponds with the 23.6% Fibonacci retracement level. This figure emerges from the price swing between $4,105 and $3,324. For traders eyeing a bounce back, the $3,650 mark stands as the initial barrier, reinforced by the bearish trend line. A significant resistance, located near $3,715, represents the 50% Fibonacci retracement level from recent downturns—making it critical ground where bulls and bears may clash in upcoming sessions.
Should buyers muster the strength to push past these resistance levels, the next target is the psychological landmark of $3,800. Breaking through here could pave the way towards the elusive $4,000 threshold, which many traders keep watch on.
Nonetheless, the outlook remains dim, with downside risks firmly in play. The immediate support level worth noting is around $3,350, while a more substantial support zone lies close to $3,320. If selling pressure continues, Ethereum could see potential landing strips around $3,250 and $3,150. The $3,050 level is also on the radar for many technical traders, representing a critical support threshold should this bearish wave continue.
The hourly MACD indicates a growing momentum in the bearish territory, weighing heavily on the forecast for a negative short-term outlook. Similarly, the RSI for ETH/USD has dipped below the 50 zone, highlighting the prevailing bearish sentiment among traders. The RSI serves as a momentum meter, helping to identify when a market is overbought or oversold.
Trading volume points to increased selling activity during this period of price decline, with substantial transactions noted as the cryptocurrency smashed through different support levels. This recent price action has created a series of lower highs and lower lows on the hourly chart, suggesting that the downward trend may persist.
Market data reveals that order books are leaning towards the sell side, with significant resistance compiling near the $3,650 level. The domino effect of recent price movements has also led to the liquidation of numerous long positions, amplifying the downward pressure as forced selling triggers additional declines. Patterns on the hourly chart hint at a bearish flag, suggesting that the current consolidation may only be a temporary phenomenon before a further plunge is tested.
