Ethereum, the world’s second largest cryptocurrency by market capitalization, has experienced a significant dip in price, struggling to rise above the $3,350 mark. Having started a fresh decline, the digital currency is now hovering below the $3,220 resistance zone and is currently trading below $3,200 with a further decline predicted.
The price decline follows a similar pattern to Bitcoin, with Ethereum falling below key thresholds of $3,320 and $3,220. The cryptocurrency went on to dip below the $3,050 level before rebounding slightly, as bulls started to take action.
The lowest point was noted at $3,021, following which the price started correcting losses. During this correction, Ethereum’s price moved above the $3,050 and $3,120 levels, even surpassing the 23.6% Fibonacci retracement level of the downwards move that started from the $3,427 swing high and ended at the $3,021 low.
However, the price has not managed to break through the $3,220 level or the 100-hourly Simple Moving Average, indicating the presence of significant resistance. The major resistance point seems to be forming around the $3,300 level.
Interestingly, a key bearish trend line is being formed with resistance at $3,270 on the hourly chart of ETH/USD. If Ethereum manages to clear the $3,300 resistance, we could see the price ascend towards the $3,350 resistance. A further break above this level could trigger additional gains in the coming sessions, potentially driving the Ethereum price towards the $3,420 or even the $3,500 resistance zone.
On the other hand, if Ethereum fails to breach the $3,220 resistance, it could trigger another decline. The initial support on the downside appears to be near the $3,120 level, followed by major support at around $3,050. A clear fall below the $3,050 support could push the price towards the $3,020 support. Any additional losses might send the price towards the $3,000 support level in the near term, with the next key support sitting at $2,950.
Technical indicators present a mixed picture for Ethereum. The Moving Average Convergence Divergence (MACD) for ETH/USD appears to be losing momentum in the bearish zone, while the Relative Strength Index (RSI) for ETH/USD is now above the crucial 50 level, indicating a potential uptrend.
In conclusion, Ethereum’s price is at a crucial juncture. It could either break past the resistance and post gains or continue its decline if it fails to clear the current resistance levels. As always, investors should exercise caution and closely monitor the market.
