Ethereum price recently faced a major setback as it failed to clear the $3,720 resistance level. This failure led to a subsequent decline, putting ETH at risk of more losses below the critical $3,550 support zone.
Upon closer examination of the hourly chart of ETH/USD, it is evident that there is a key bearish trend line forming with resistance near $3,680. Additionally, the price is currently trading below $3,650 and the 100-hourly Simple Moving Average, indicating a bearish sentiment in the market.
Despite an attempted increase above the $3,650 resistance zone, Ethereum price faced resistance and spiked above $3,700 before starting a fresh decline. The decline saw the price plummet below the $3,660 and $3,650 levels, with a low forming near $3,565. This consolidation of losses mirrors a similar trend seen in Bitcoin.
Resistance and Support Levels
In the event of a recovery wave, Ethereum price might encounter resistance near the 23.6% Fib retracement level of the downward move from the $3,710 swing high to the $3,565 low. The first major resistance is anticipated near the $3,640 level, with a key bearish trend line forming at $3,680. An upside break above this resistance could signal a potential rally towards the $3,720 level.
However, if Ethereum fails to clear the $3,650 resistance, it could continue its downward trajectory. Initial support is expected near $3,550, followed by the $3,520 zone. The main support stands at $3,500, with a clear move below this level potentially pushing the price towards $3,320 or even the $3,250 level in the near term.
The Hourly MACD for ETH/USD is currently gaining momentum in the bearish zone, indicating further downside potential. Additionally, the Hourly RSI has dropped below the 50 zone, reflecting a bearish sentiment among traders.
The bearish outlook on Ethereum price suggests a challenging road ahead for the cryptocurrency. Traders and investors should closely monitor key resistance and support levels to gauge the future direction of ETH in the market.
