Ethereum’s price has been facing challenges, failing to surpass the $3,650 resistance level. After the decision by the Federal Reserve, ETH experienced another decline, showing bearish indications below the $3,550 mark.
The decline started with a break below the $3,580 support zone, and currently, Ethereum is trading below both $3,550 and the 100-hourly Simple Moving Average. On the hourly chart of ETH/USD, a significant bearish trend line is forming near $3,610, suggesting that the pair could experience further losses if it fails to stay above the $3,600 resistance zone.
After attempting a recovery above $3,550 and $3,580, Ethereum was unable to sustain gains above $3,650, resulting in another downward move. The price dropped below the $3,550 support level, breaking the 61.8% Fib retracement level of the upward movement from the $3,431 low to the $3,655 high.
With Ethereum now trading below $3,550 and the 100-hourly Simple Moving Average, the hourly chart reveals a bearish trend line near $3,610. If the price rallies again, it may face resistance at the $3,580 level. Pushing beyond this point would encounter the first key resistance at $3,600, along with the mentioned trend line. A breakthrough above $3,600 could lead to further gains towards $3,650 and potentially even up to $3,720.
Attaining a clear move above $3,720 could prompt a test of the $3,800 resistance, potentially paving the way for Ether’s price to reach the $3,880 resistance zone.
However, if Ethereum fails to surpass the $3,600 resistance, it may continue its downward movement. Initial support lies around $3,480, along with the 76.4% Fib retracement level of the upward rally from the $3,431 low to the $3,655 high. Should the price break below the $3,420 zone, it could drop further towards $3,320. Additional losses might lead the price to the $3,250 level in the short term.
Analyzing the technical indicators, the MACD for ETH/USD on the hourly chart suggests increasing momentum in the bearish zone, while the RSI has fallen below the 50 zone.
In conclusion, Ethereum’s price is facing downward pressure, with more potential downside risks in sight. Traders and investors should closely monitor the $3,600 resistance and the support levels at $3,420 and $3,320.