Ethereum Price Downward Drift: Decline Resumes Again

Ethereum’s price has once again begun to decline, following its failure to break through the $3,720 resistance. Currently, there is a risk of further losses for ETH as it trades below the $3,650 level and the 100-hourly Simple Moving Average. On the hourly chart of ETH/USD, a bearish trend line has formed with resistance near $3,680. If the price fails to close above the $3,550 support, it could extend its losses.

ETH attempted to rally above the $3,650 resistance but faced selling pressure, resulting in a sharp downturn. The price dropped below $3,660 and $3,650, with a low formed around $3,565. Ethereum is currently consolidating these losses below the 100-hourly Simple Moving Average.

In the event of a potential recovery wave, the price may encounter resistance near the 23.6% Fib retracement level of the downward move from the $3,710 swing high to the $3,565 low, followed by the $3,640 level. A bearish trend line is also forming near $3,680, representing the 61.8% Fib retracement level.

Should the price manage to break above the $3,680 resistance, it could pave the way for further gains. Key resistances to watch for include $3,720, $3,750, and $3,800. On the downside, if Ethereum fails to clear the $3,650 resistance, it may continue its downward movement. Initial support lies at $3,550, followed by the $3,520 zone. The main support stands at $3,500, and a clear break below this level could push the price toward $3,320.

Technical indicators suggest a bearish momentum as the MACD for ETH/USD gains strength in the bearish zone, and the RSI is now below 50. The major support level is at $3,550, while the major resistance level can be found at $3,650.