Investors closely monitoring the world of cryptocurrency have expressed concern and speculation due to recent developments in the Ethereum market. The price of Ethereum was unable to surpass the resistance zone at $3,280 and has now fallen below the $3,200 support level. Currently, the price is consolidating losses above $3,100.
Ethereum Price Approaches Critical Support
The market has experienced a noticeable resistance atmosphere as Ethereum struggled to surpass the $3,250 and $3,280 resistance levels. The price is trading below $3,200 and has dropped below the 100-hour Simple Moving Average, causing concern among investors. The hourly chart of ETH/USD shows 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 continue.
ETH in a Downtrend
As Ethereum faces challenges in surpassing the $3,250 and $3,280 resistance levels, a new downtrend has emerged. The price has fallen below the $3,200 support, signaling a short-term downtrend. The break below the important ascending trend line at $3,190 on the ETH/USD four-hour chart has caused concern in the market. The pair has retreated to around $3,150 and tested the $3,100 level. However, some stability has been achieved 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 or 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 result in the price aiming towards $3,250. If the price manages to close above the $3,250 resistance, Ethereum is likely to test the $3,280 resistance. Breaking this resistance could potentially push 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, there is a possibility of further downtrend. Currently, there is a downward momentum in the market. In this scenario, the first support 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 the price drops below this level, selling pressure may increase, leading Ethereum to decline to $2,850. Further losses could see the price retreat to as low as $2,650 in the near term.
Disclaimer:
The information provided in this article should not be considered as investment advice. Investors should be aware of the high volatility and risk associated with cryptocurrencies and should conduct their own research.
