Ethereum price is currently facing several hurdles near the $3,200 mark. Despite multiple attempts to break through this resistance level, ETH has been unable to sustain a significant upward trend. The price is currently trading below $3,200 and the 100-hourly Simple Moving Average, indicating a lack of bullish momentum in the market. One of the key obstacles for Ethereum at the moment is the formation of a bearish trend line with resistance at $3,120 on the hourly chart of ETH/USD.
Potential for Another Decline
If Ethereum fails to break above the $3,200 resistance level and continues to struggle near the $3,280 mark, we may see another major decline in price. A close below the $2,900 support zone could trigger a new downward trend for ETH. Despite finding support at lower levels and attempting a recovery above $3,000, Ethereum has been unable to gain enough momentum to break through key resistance levels. The recent high at $3,278 was met with a bearish reaction, leading to a dip below the 23.6% Fib retracement level.
The immediate resistance for Ethereum is near the $3,100 level, followed by the $3,120 resistance from the bearish trend line. The major hurdle lies at $3,200, which also coincides with the 100-hourly Simple Moving Average. If Ethereum manages to surpass these levels, the next key resistance sits at $3,280, with potential for a move towards $3,350 and even $3,500. A breakthrough above $3,620 could signal a bullish momentum shift, with a target of $3,750 in sight.
On the downside, if Ethereum fails to clear the $3,200 resistance, it could face a new wave of selling pressure. The initial support level is near $3,000, followed by the $2,900 zone or the 50% Fib retracement level. A break below these levels could send Ethereum towards the $2,710 support area, and possibly even lower to $2,650 and $2,550 levels. It is essential for Ethereum to maintain support levels to avoid a prolonged downtrend in the market.
Technical Indicators
The hourly MACD for ETH/USD is currently losing momentum in the bearish zone, signaling a potential continuation of the downward trend. However, the hourly RSI has crossed above the 50 level, indicating a possible shift towards a more bullish sentiment. Traders and investors should closely monitor these technical indicators to gauge the overall market sentiment and potential price movements for Ethereum.
Ethereum is currently facing significant challenges in breaking through key resistance levels and sustaining a bullish trend. The next few trading sessions will be crucial in determining the future direction of ETH price. Traders are advised to exercise caution and conduct thorough research before making any investment decisions in the volatile cryptocurrency market.