Ethereum’s price has recently begun to decline once again, following a period of sideways movement. Similar to Bitcoin, ETH has fallen below $3,120 and is approaching the $3,000 mark. If it breaks below the critical support level of $2,850, the downward trend may continue. However, Ethereum is facing more challenges than just support levels during these difficult times.
Ethereum Fails to Overcome Critical Resistance
Upon examining the charts, it is evident that there is a clear downward trend line on the hourly charts, indicating a movement from previous high levels to lower levels. It is worth noting that the current price position is facing resistance at around $3,020.
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In the near future, Ethereum’s key resistance levels are also apparent. Specifically, a rise above the $3,185 level could indicate a potential uptrend. If this occurs, the $3,250 resistance level could become a significant target for Ethereum.
If Ethereum Continues Its Downward Movement
Ethereum (ETH) has been grappling with uncertainties recently and warns of further downward movements if it fails to surpass the resistance level of $3,120.
Currently, the ETH/USD pair is continuing its downward movement, with the first support level near $2,940 and in close proximity to the channel area. However, there is a larger support level around the $2,850 region. The main support level is approximately $2,800. If there is a sharp drop below this level, Ethereum’s price could plummet to around $2,650. In a worst-case scenario, the price could even reach around $2,540.
What Do Technical Indicators Say?
Technical indicators indicate that the current situation for ETH/USD is not very promising. The hourly MACD is gaining momentum in the bearish zone, suggesting a potential downward trend. Similarly, the hourly RSI is currently below the 50 level, indicating increased selling pressure.
At this juncture, there are critical levels that investors should keep an eye on. Firstly, the support level of $2,940 could play a significant role. If this level is breached, we may witness further downward pressure. On the other hand, a break above the resistance level of $3,120 could be a positive sign for the bulls and might indicate the start of a price rally.
Disclaimer:
The information provided in this article should not be considered as investment advice. Investors should be aware that cryptocurrencies are highly volatile and carry inherent risks. It is recommended to conduct thorough research before making any investment decisions.