Key Takeaways
– Ethereum price witnessed a fresh decline from the $3,450 zone and is now trading below $3,400.
– There is a major bearish trend with resistance at $3,340.
– Ethereum might slip to $3K if it fails to clear the $3,400 resistance.
– Price could rise to $3,650 or even $3,720 if it breaks $3,550 resistance.
Ethereum’s Recent Price Downturn
In recent developments, Ethereum failed to break past the $3,450 resistance and initiated a deeper fall. The second-largest cryptocurrency appeared to struggle as it began its downward slide from the $3,450 mark. At present, Ethereum’s price is teetering below the $3,400 mark and the 100-hourly Simple Moving Average.
Bearish Trend in Sight
A distinct bearish trend line is presently forming, exhibiting resistance at $3,340. This ongoing bearish trend is observable on the hourly chart of the ETH/USD trading pair. Since the cryptocurrency failed to initiate a recovery phase above the $3,500 mark, Ethereum’s losses extended in sync with Bitcoin’s downturn. This decline breached both the $3,450 and the $3,400 support levels.
Fibonacci Zones and Resistance Levels
Ethereum’s value took a hit below $3,350 and $3,320, resulting in a long at $3,213. As it stands, Ethereum’s price consolidates beneath the 23.6% Fib retracement level, taking into account the recent plummet from the $3,743 swing high to its current low. A strong resistance nearing the $3,475 level equates to the 50% Fib retracement level of this aforementioned decline. As the market prediction goes, a sharp breakout above the $3,500 threshold may signal an upward surge towards the subsequent resistance at $3,550.
Positives on the Upside for Ethereum
Should the Ethereum price break through the $3,550 resistance, it could spell massive gains in the following sessions. Assuming this scenario, Ethereum’s price could surge towards $3,650 or even $3,720 in the near future.
Risks for More Losses
Alternatively, Ethereum could experience further depreciation if it struggles to overcome the $3,400 resistance. Initial support on the downside appears near the $3,280 mark, followed by the formidable support level at $3,220. In case the price breaks down past the $3,220 support, expect Ethereum’s price to possibly hit $3,150. In the worst-case prediction, Ethereum’s price might even retrace as far back as $3,050 or even $3,000.
Technical Outlook
From a technical viewpoint, the MACD for ETH/USD is indicating growing momentum in the bearish zone. Furthermore, the RSI for ETH/USD now stands below the 50 mark, indicating a bearish pattern. The major support level to keep an eye for stands at $3,250, and the primary resistance level is placed at $3,400.
The overall bearish outlook indicates that Ethereum’s price might be at risk in the short term. Investors should monitor the situation closely as there is potential for the value to either break above the resistance line and surge or continue its downward trend and possibly reach the $3K milestone.