Ethereum's price is experiencing a significant decline, descending from its recent peak at the $3,550 resistance level. This shift now positions Ethereum under bearish pressure, with potential movement below the pivotal $3,300 support mark. The situation mirrors Bitcoin’s recent downward trajectory, as Ethereum struggles to sustain momentum above $3,550.
Ethereum has fallen below key support thresholds at $3,450 and $3,420. A notable breach beneath a bullish trend line with support situated at $3,450 was observed on the hourly ETH/USD chart, as per data from Kraken.
This breach also extends below the 50% Fibonacci retracement level taken from the upward surge that started at the $3,225 low, culminating at $3,543.
Currently, Ethereum is trading under $3,450 and the 100-hourly Simple Moving Average. The $3,300 level now serves as a testing ground, staying above the 76.4% Fibonacci retracement level from the recent upward swing. The path upward is encumbered by resistance, initially at the $3,380 threshold, with more significant barriers at $3,420 and a principal resistance now establishing near $3,500. Successfully navigating past the $3,500 resistance could elevate ETH towards the previous $3,550 high.
A break above $3,550 could potentially trigger further upward movements in the near term, targeting the $3,650 resistance zone, or even reaching the $3,720 level. However, failure to surpass the $3,420 resistance may result in continued downward pressure. Initial reinforcement in such a scenario lies near $3,320, with the first major support resting around $3,300. A decisive drop below this level could send prices towards $3,250, with subsequent declines possibly pushing the price to $3,220. The next critical support zone is marked at $3,110.
The hourly MACD for ETH/USD is intensifying its momentum within the bearish domain. Meanwhile, the hourly RSI for ETH/USD has slipped below the 50 mark, highlighting increased bearish inclination.
Key Levels to Watch
- Major Support: $3,300
- Major Resistance: $3,420