Ethereum’s price has been on a downward trend and is now facing the possibility of dropping below the $3,000 support level. The bears are putting pressure on the cryptocurrency, and if it fails to stay above this support, further declines may be expected.
Ethereum initially started correcting lower from the $3,350 zone, and is currently trading below $3,350 and the 100-hour Simple Moving Average. A major bearish trend line is forming with resistance at $3,420 on the hourly chart of ETH/USD. To resume its decline, the price needs to stay below the $3,420 and $3,500 resistance levels.
The recent decline resulted in Ethereum breaking below the $3,200 support level, reaching a low of $3,162. The price is now consolidating losses and showing bearish signs, indicating the possibility of further declines. Immediate resistance is near the $3,280 level, followed by the major resistance at $3,350. If the price manages to surpass these levels, it could gain bullish momentum and potentially reach the $3,650 and $3,800 resistance levels.
However, if Ethereum fails to clear the $3,420 resistance, it could continue to move downwards. Initial support on the downside is near the $3,260 level, followed by the major support at $3,200. A clear break below the $3,120 support level may push the price towards $3,050, with further losses potentially leading to a test of the $3,000 level.
Current technical indicators suggest a bearish momentum for Ethereum, with the MACD gaining momentum in the bearish zone and the RSI dropping below the 50 level.
Disclaimer: This article is for educational purposes only and does not constitute financial advice. Investing in cryptocurrencies carries risks, and readers are encouraged to conduct their own research before making any investment decisions.