Ethereum, the second largest cryptocurrency in terms of market capitalization, suffered a significant price dip after failing to clear the $3,750 resistance level. Despite showing promise and stability above the $3,650 mark and even extending an upward trajectory similar to Bitcoin, Ethereum was unable to break past the $3,750 barrier. The inability to breach this resistance triggered a fresh decline, with the price now oscillating around $3,350.
The cryptocurrency began its descent from the $3,750 zone, trading below $3,550 and the 100-hourly Simple Moving Average. There was also a break below a connecting bullish trend line with support pegged at $3,675 on the hourly chart of the ETH/USD pair. This suggests that Ethereum could struggle to start a fresh increase above the $3,450 resistance level.
During its upward momentum, Ethereum had successfully navigated past the $3,680 and $3,700 resistance levels. However, the bulls failed to sustain the momentum past the $3,750 mark. The highest point reached was $3,742 before the currency began its decline, falling below the $3,650 and $3,550 levels.
Now, Ethereum is trading below the $3,550 mark and the 100-hourly Simple Moving Average. On the upside, the cryptocurrency seems to be facing resistance near the $3,450 level. The first major resistance is near the $3,500 level, with the main resistance forming near the $3,550 mark, or the 50% Fib retracement level of the recent decline from the $3,742 swing high to the $3,356 low.
If Ethereum can overcome the $3,550 resistance, it might spur a price increase towards the $3,650 resistance. In such a scenario, Ethereum could rise towards the $3,750 resistance zone or even reach $3,880 in the near term.
However, if Ethereum fails to clear the $3,450 resistance, it could trigger another decline. The initial support on the downside is near the $3,350 level, with the first major support sitting near the $3,320 mark. A clear move below the $3,320 support might push the price towards the $3,250 level, with any further losses potentially sending the price towards the $3,150 support level in the near term.
Technical indicators suggest that the MACD for ETH/USD is gaining momentum in the bearish zone, while the RSI for ETH/USD is now below the 50 zone, indicating a bearish market sentiment. The major support level is at $3,350, with the major resistance level sitting at $3,450.
