Ethereum’s price has continued to decline below the $3,500 mark, leading to speculation that the bears could push the cryptocurrency down to the $3,200 support level. The downward movement is attributed to Ethereum’s correction below the $3,550 zone and the fact that it is trading below the 100-hourly Simple Moving Average as well. A bearish trend line has also formed with resistance at $3,520 on the ETH/USD hourly chart, suggesting that the crypto could continue its decline if it fails to break above the $3,520 and $3,550 resistance levels.
The decline in Ethereum’s price began with a correction below the $3,720 and $3,650 levels, similar to Bitcoin. The cryptocurrency then dropped below the $3,550 support level, entering a short-term bearish zone. It subsequently traded below the $3,420 support level, forming a low at $3,365 before consolidating its losses. However, there are still bearish indicators, such as the price being below the 23.6% Fib retracement level and the 100-hourly Simple Moving Average.
The immediate resistance for Ethereum is near the $3,440 level, with the first major resistance at $3,520. Additionally, there is a major bearish trend line at $3,520, close to the 50% Fib retracement level. If the price manages to break above these levels, it could rally towards $3,650 and even rise to $3,825. Further gains might even lead to a test of $4,000.
On the downside, if Ethereum fails to clear the $3,520 resistance, it could continue its downward movement. The initial support is at the $3,365 level, followed by the $3,320 zone. The next crucial support could be found at $3,250, and a clear move below this level might bring the price down to $3,200. Any further losses could then see the price approaching the $3,150 level.
The technical indicators also indicate a bearish sentiment, with the MACD for ETH/USD gaining momentum in the bearish zone and the RSI falling below the 50 level.
It’s important to note that this analysis is for educational purposes only and does not constitute financial advice. Conducting individual research and considering the risks involved is crucial before making any investment decisions.