Ethereum has been facing a tough time in the cryptocurrency market, with its price extending its decline and testing the $3,720 support level. The current scenario shows that ETH is now consolidating and encountering multiple obstacles near the $3,800 mark.
A new bearish trend line has formed with a resistance level at $3,810 on the hourly chart of ETH/USD, which is causing further hindrance to Ethereum’s price momentum. The price is currently trading below $3,820 and the 100-hourly Simple Moving Average, indicating a downward trend. If the $3,720 support is broken, the pair may continue to move further down in the market.
Despite the bearish trend, the bulls have been actively defending the $3,720 support zone, preventing a significant drop in price. However, Ethereum is still struggling to break above the $3,800 resistance level and the 100-hourly Simple Moving Average. If there is a fresh increase, ETH is likely to face resistance near the $3,800 level and the newly formed bearish trend line at $3,810. The first major resistance is expected near the $3,850 level.
An upside break above the $3,850 resistance could signal a positive movement in price, with the next key resistance at $3,890. If Ethereum manages to surpass this level, the price might gain traction and rise towards $3,950. A further breakthrough could push the price to test the $4,000 resistance, with the possibility of reaching the $4,080 zone. On the other hand, failure to clear the $3,800 resistance might result in a downward movement, with initial support near $3,720 and major support at $3,640. A clear break below $3,640 could lead to a drop towards $3,550 and potentially $3,500 in the near future.
The hourly MACD for ETH/USD is currently losing momentum in the bearish zone, indicating the challenges faced by Ethereum in the market. The hourly RSI has also dipped below the 50 zone, highlighting the struggle for price stability and an upward trend for Ethereum.
