Ethereum Price Struggles to Overcome Resistance: Faces Uphill Battle Ahead
The price of Ethereum has experienced a significant decline and tested the support level at $3,580. Currently, ETH is in the process of recovering, but it is anticipated to encounter numerous obstacles near the $3,740 zone.
- Ethereum has initiated a recovery wave, managing to surpass the $3,660 resistance level.
- Presently, the price remains below $3,750 and the 100-hourly Simple Moving Average.
- On the hourly chart of ETH/USD (data feed via Kraken), a crucial bearish trend line is forming with resistance near $3,740.
- Unless there is a close below the $3,640 support level, the pair is likely to commence a fresh upward movement.
Ethereum Price Confronts Resistance
The price of Ethereum extended its decline beneath the support zone at $3,660. It even went below $3,600 before the bull market emerged. Eventually, a low point was established near $3,574, and presently, the price is correcting its losses, similar to Bitcoin.
Above the $3,650 and $3,660 levels, there was a surge in the price. However, the $3,700 level failed to witness a conclusive breakthrough.
Currently, Ethereum is trading below $3,740 and the 100-hourly Simple Moving Average. If there is another uptrend, ETH may face resistance near the $3,700 level.
The initial major resistance level is found near $3,740. Additionally, on the hourly chart of ETH/USD, a significant bearish trend line is forming with resistance near $3,740. The trend line coincides with the 61.8% Fib retracement level of the downward movement from the $3,838 swing high to the $3,574 low.
A breakthrough above the $3,740 resistance level might drive the price up. The subsequent crucial resistance point lies at $3,800, and if surpassed, the price may gain momentum and surge toward the $3,840 level. In the event that the bulls manage to push Ether above the $3,840 level, the price will likely rise and test the $4,000 resistance level. Moreover, any further gains could propel Ether toward the $4,080 resistance zone.
Another Potential Downturn for ETH?
Failure to overcome the resistance level at $3,740 could result in further downward movement for Ethereum. Initial support in such a scenario can be found near $3,660, followed by the major support level at around $3,640.
The critical support is located at $3,580. A clear decline below this support area might push the price toward $3,500. Any additional losses could drive the price toward the $3,450 level in the near future.
Technical Indicators
Hourly MACD – The MACD for ETH/USD indicates increasing bearish momentum.
Hourly RSI – The RSI for ETH/USD is currently below the 50 zone.
Major Support Level – $3,640
Major Resistance Level – $3,740