Ethereum, the second-largest cryptocurrency by market capitalization, recently experienced a fresh decline, starting from the $3,450 zone, and extended its losses. It has been struggling to clear the $3,450 resistance level, and if the cryptocurrency remains below $3,500, it may continue on a downward trajectory.
Currently, Ethereum’s price is trading below $3,400, under the 100-hourly Simple Moving Average, a key factor in tracking short-term price changes. Moreover, a connecting bearish trend line is forming with resistance at $3,340 on the hourly chart of ETH/USD, indicating potential future struggles for the cryptocurrency to increase its price above the $3,400 resistance level.
Despite attempts to initiate a recovery wave above the $3,500 level, Ethereum’s price has continued to extend losses. The cryptocurrency took a significant hit, declining below the $3,450 and $3,400 support levels. There was a decisive move below $3,350 and $3,320, with the price bottoming out at $3,213.
The cryptocurrency is now trying to consolidate its position below the 23.6% Fib retracement level of the recent decline from the $3,743 swing high to the $3,213 low. The bearish trend line with resistance at $3,340 on the hourly chart of ETH/USD is also continuing to form.
On the upside, Ethereum price seems to be encountering hurdles near the $3,350 level and the trend line. The first significant resistance is near the $3,475 level or the 50% Fib retracement level of the recent decline from the $3,743 swing high to the $3,213 low. The main resistance is currently forming near $3,500, and any movement above this could potentially propel the price towards the $3,550 resistance.
If Ethereum manages to break the $3,550 resistance, this could potentially lead to more gains in the forthcoming sessions. In this scenario, Ethereum’s price could rise towards the $3,650 resistance zone, or even reach $3,720 in the near term.
However, if Ethereum fails to clear the $3,400 resistance, it could trigger another decline. Initial support on the downside is near the $3,280 level, with the first major support sitting near the $3,220. A clear move below the $3,220 support might push the price towards the $3,150 support. Any further losses could potentially push Ethereum towards the $3,050 support level in the near term, with the next key support sitting at $3,000.
In terms of technical indicators, the MACD for ETH/USD is gaining momentum in the bearish zone, while the RSI for ETH/USD is now below the 50 zone, suggesting a bearish market sentiment. The major support level sits at $3,250, and the major resistance level at $3,400.
