Key Takeaways:
– Ethereum price has fallen below the $3,550 threshold, indicating potential further declines.
– The cryptocurrency has not been able to rebound above the $3,550 mark and has recorded additional losses.
– There’s an emerging bearish trend with a resistance level set at $3,420.
– If the Ethereum price does not maintain above the $3,550 support zone, it could continue to plummet.
Dipping Etheruem Rates
In the world of cryptocurrency, Ethereum’s recent performance has caused a stir among market-watchers. The Ethereum price began a fresh drop below the $3,550 zone, which has alarmed some investors. The trending bearish signs particularly caught the attention of crypto enthusiasts. The price is currently trading below $3,500, and there’s a bearish trend line forming with resistance at $3,420, based on the hourly chart of ETH/USD.
Consistent losses can have a domino effect, and Ethereum’s current slide shows no signs of stopping. The cryptocurrency, like Bitcoin, has extended losses. This negative momentum has pushed the coin’s price below the $3,450 level to trade under $3,300.
Diminishing Value
It’s not just minor losses; Ethereum has dived below $3,220, with intraday lows forming at $3,100. Currently, Ethereum is consolidating its losses, but the clear bearish trend line with resistance at $3,420 has proceeded to form, hinting at more potential downturns. A close examination shows there was a previous close below the 50% Fib retracement level from the swing low of $3,100 to the high of $3,553.
Distinctly, Ethereum is trading below $3,500 and the 100-hourly Simple Moving Average, highlighting the bearish vibe surrounding the leading altcoin. On the upside, the price encounters hurdles near the $3,350 level, with the first major resistance being at around the $3,400 level.
Resistance and Support Levels
The primary resistance is currently forming near $3,420. This means an Ethereum price clear above the $3,420 resistance could potentially encourage the coin towards the $3,500 resistance. If Ether successfully crosses the $3,500 obstackle, it could invite more gains in the future, possibly even leading Ether towards the $3,550 or even $3,650 resistance zones.
On the flip side, if Ethereum finds it challenging to clear the $3,420 resistance, it could potentially keep dropping. The initial downside support lies near the $3,200 level. The first significant support stands near the $3,120 zone.
A stubborn fall below the $3,120 support could force Ethereum’s price towards the $3,050 support. But if the loses extend further, it might guide the price towards the $3,000 support level shortly. Consequently, the next vital support is positioned at $2,880.
Technical Analysis
According to technical indicators, the Moving Average Convergence Divergence (MACD) for ETH/USD is amassing momentum in the bearish zone. Concurrently, the Relative Strength Index (RSI) for ETH/USD slips below the 50-zone, signaling weak stochastic oscillation. The significant support sits at $3,120 while the major resistance is fixated at $3,420.
Conclusion
These volatile movements are not new in the cryptocurrency landscape. While Ethereum’s current situation may appear bearish, seasoned traders and investors know that it’s part and parcel of the crypto market’s unpredictable nature. Staying informed and keeping a close eye on these trends is crucial in making well-informed trading decisions to mitigate risks and potentially maximize gains.