TLDR
- Ethereum has experienced a sharp decline, falling below $3,680 and currently trading below $3,550
- An important bearish trend line has formed with resistance at $3,650 on the hourly chart
- The cryptocurrency hit a low of $3,324, with current major support at $3,320
- Technical indicators, including MACD and RSI, suggest continued bearish momentum
- Recovery would require breaking through several resistance levels, with $3,715 as a crucial point
Ethereum’s price trajectory has taken a downward turn, with the leading altcoin falling below several key support levels in recent hours. The cryptocurrency has fallen more than 7% and is currently trading below the $3,550 mark, indicating continued bearish pressure in the near term.
The decline began as Ethereum struggled to maintain momentum above the $3,680 level, leading to a cascade of technical support breaks. The price action mirrors the broader market movement, with Bitcoin also experiencing similar downward pressure over the same period.
Trading data from Kraken shows that Ethereum’s price movement has broken below the 100-hour Simple Moving Average, a technical indicator often used to determine market trends. This break suggests that bears have gained control of the immediate price action.
The depth of the current decline became apparent as Ethereum’s price continued to decline, eventually reaching a local low of $3,324. This price point represents a notable departure from recent trading ranges and has established a new support level that traders are watching closely.
Technical analysis of the hourly chart reveals the formation of a bearish trend line with resistance placed at $3,650. This pattern suggests that any attempted recovery will face strong selling pressure at these higher levels.
Current market data indicates that Ethereum consolidated around the $3,510 level, which coincides with the 23.6% Fibonacci retracement level. This technical action takes into account the recent price swing from $4,105 to the $3,324 low.
For traders looking at potential recovery scenarios, the first major hurdle appears at the $3,650 mark. This level is reinforced by the previously mentioned bearish trend line, making it a crucial point for possible upside moves.
A more significant resistance level has formed near $3,715, which represents the 50% Fibonacci retracement level of the recent downward move. This price point could prove to be a key battleground between bulls and bears in the coming trading sessions.
Should buyers succeed in pushing the price above these immediate resistance levels, the next major target would be the $3,800 mark. A successful break above this point could open the way towards the psychologically important $4,000 level.
However, the current technical setup suggests that downside risks remain prevalent. The immediate support level to watch is near $3,350, with a more extensive support zone established around $3,320.
If the selling pressure continues and Ethereum fails to hold these support levels, the next potential landing zones will appear at $3,250 and $3,150. Technical traders are particularly looking at the $3,050 level as a crucial support point that could come into play if the current bearish momentum continues .
The hourly MACD (Moving Average Convergence Divergence) indicator shows increasing momentum in the bearish zone, adding weight to the negative short-term outlook. This technical indicator is often used to measure trend strength and direction.
Likewise, the RSI (Relative Strength Index) for ETH/USD has dipped below the 50 zone, indicating that bearish pressure is currently dominating market sentiment. The RSI is a momentum indicator that helps traders identify overbought or oversold conditions.
Trading volume data indicates increased selling activity during this price decline, with several large transactions recorded as price broke through various support levels.
The price action has created a series of lower highs and lower lows on the hourly chart, a pattern that usually indicates a continued downtrend in technical analysis.
Market data shows that the order books are currently weighted to the sell side, with significant resistance building near the $3,650 level.
Recent price action has led to the liquidation of several long positions, adding to downward pressure as forced selling triggers further price declines.
Hourly chart patterns suggest the formation of a bearish flag, indicating that the current consolidation may be temporary before another potential move lower.
