Ethereum price is currently struggling below the $3,840 support level, indicating a bearish trend in the market. The cryptocurrency failed to clear the $3,850 resistance zone and faced rejection near the $3,800 level. This failure to break key resistance levels suggests a lack of bullish momentum.
One significant development is the break below a key bullish trend line with support near $3,780 on the hourly chart of ETH/USD. This breakdown indicates a shift in momentum towards the bears. Furthermore, if Ethereum fails to hold above the $3,700 support level, it could signal further downside potential.
In the event of a bullish reversal, Ethereum may encounter resistance near the $3,800 level. The first major resistance lies at $3,840, followed by $3,900 and $4,000 levels. Breaking above these resistance levels could trigger a potential uptrend towards $4,080 and even $4,220. However, failure to surpass the $3,840 resistance might result in another downward move.
If Ethereum continues to face selling pressure, it could find initial support near the $3,730 level. A decisive move below the $3,700 support zone could expose the cryptocurrency to further losses towards $3,660 and even $3,550 in the short term. The breach of key support levels suggests a bearish outlook for Ethereum price.
Technical Indicators
The hourly MACD for ETH/USD is currently in the bearish zone, indicating a potential downside momentum. Moreover, the hourly RSI is below the 50 zone, highlighting the current weakness in Ethereum’s price action. These technical indicators suggest a bearish outlook for Ethereum price in the near future. Traders and investors should closely monitor key support and resistance levels to gauge the cryptocurrency’s price direction.
