The recent movement in the price of Ethereum has been quite tumultuous. After rallying above the $3,300 level, ETH tested the $3,350 resistance and then started a sharp decline below $3,300. This decline was significant as it caused Ethereum to trade below $3,220 and the 100-hourly Simple Moving Average. Additionally, there was a break below a key bullish trend line with support at $3,250 on the hourly chart of ETH/USD, indicating a shift in market sentiment.
Ethereum’s price increase above $3,200 level was impressive, outperforming Bitcoin and even clearing the $3,300 resistance. However, the bears were quick to respond near the $3,350 level. A high was formed at $3,355 before the price started a fresh decline. This decline was further exacerbated by a sharp move below the $3,300 level, leading to a break below the 50% Fib retracement level. The price declined below the 100-hourly Simple Moving Average, indicating a shift in momentum in favor of the bears.
Currently, Ethereum is facing crucial support and resistance levels. The bulls are active near the $3,165 support and the 61.8% Fib retracement level. The immediate resistance is near the $3,210 level and the 100-hourly Simple Moving Average. The first major resistance is at $3,250, with a key resistance level at $3,350. A breakthrough above $3,350 could pave the way for further gains towards $3,465 and even $3,550. On the other hand, a failure to clear the $3,210 resistance could result in additional downward pressure. Initial support is at $3,180, followed by major support at $3,165 and the main support at $3,070.
Technical Indicators
The technical indicators for Ethereum are also showing signs of bearish momentum. The hourly MACD for ETH/USD is gaining momentum in the bearish zone, suggesting a negative outlook for the price. The hourly RSI is now below the 50 level, indicating a potential increase in selling pressure. These technical indicators, combined with the key support and resistance levels, provide valuable insights into the future price movement of Ethereum.
The recent price movement of Ethereum has been marked by a sharp decline and increased bearish sentiment. While the bulls are trying to defend key support levels, the bears seem to be gaining momentum. Traders and investors should closely monitor the technical indicators and key support and resistance levels to make informed decisions. As always, it is important to conduct thorough research and assess the risks before making any investment decisions in the volatile cryptocurrency market.
