Investors closely following the world of cryptocurrencies are growing concerned and speculative due to recent developments in the Ethereum market. Ethereum’s price has been unable to overcome the resistance zone at $3,280 and has now fallen below the $3,200 support level. Currently, it is consolidating losses above $3,100.
Ethereum Price Approaches Critical Support
The inability of Ethereum to surpass the resistance levels at $3,250 and $3,280 has created a noticeable resistance atmosphere in the market. The price has dropped below $3,200 and the 100-hour Simple Moving Average, causing concern among investors. On the hourly chart of ETH/USD, there has been a significant break below the $3,190 support, indicating that bears are gaining strength. If the pair continues to trade below the $3,100 support, there is a fear that the downward movement may persist.
ETH in a Downtrend
Ethereum is facing a new downtrend as it struggles to surpass the resistance levels at $3,250 and $3,280. The cryptocurrency has fallen below the $3,200 support, entering a short-term downtrend. Particularly, the break below an important ascending trend line at $3,190 on the four-hour chart of ETH/USD is causing concern in the market. The pair has retreated to around $3,150, testing the $3,100 level. However, some stability has been found at a low of $3,105, and the price is currently consolidating losses at these levels.
Critical Resistance Levels
The immediate resistance level is around $3,180, just below the 100-hour Simple Moving Average. The first major resistance is near the $3,200 level, which is close to the 50% Fibonacci retracement level of the recent decline at $3,291. The next key resistance is at the $3,220 level, and a rise above this level could see the price aiming towards $3,250. If Ethereum manages to close above the $3,250 resistance, it is likely to test the $3,280 resistance. Breaking this resistance could potentially lead Ethereum towards the $3,500 resistance zone.
More Declines Could Bring These Levels for ETH
As long as Ethereum fails to surpass the critical $3,200 resistance, its price could continue to experience a further downtrend. Currently, there is a downward momentum in the market. In this scenario, the first support level is around $3,120. In a larger decline, significant support could be found at the $3,100 region. The main support point is near $3,030. If Ethereum drops below this level, selling pressure could increase, dragging its price down to $2,850. Further losses might see the price retreat to as low as $2,650 in the near term.
Disclaimer:
Please note that the information provided in this article does not constitute investment advice. Investors should be aware that cryptocurrencies are highly volatile and carry a certain level of risk. It is recommended to conduct thorough research before making any investment decisions.
