Ethereum Faces Resistance as Bulls Struggle to Break Through

The price of Ethereum has entered a new phase of decline after dropping below the $3,500 mark. Currently, ETH is trying to stage a recovery from a low of $3,050, but it is encountering significant resistance around the $3,500 level.

• Ethereum has embarked on a fresh bearish trend after settling beneath the $3,550 threshold.
• At present, the price remains below $3,500 and is trading under the 100-hourly Simple Moving Average.
• The hourly chart for ETH/USD (data sourced from Kraken) shows a breakout above a bearish trend line that had resistance at $3,410.
• If the price continues to trade below $3,320, the downward momentum may persist.

Resistance Levels for Ethereum Price

Ethereum's price movement has failed to maintain a bullish trajectory, initiating a decline that has seen it fall below the $3,500 threshold, mirroring trends observed in Bitcoin. This downward movement pushed ETH below both the $3,450 and $3,350 levels, firmly placing it in a bearish market.

The decline accelerated as the price dropped beneath $3,250, with bullish activity only emerging near the $3,050 mark. A low was recorded at $3,058, after which a recovery attempt began. This recovery included a rise above the 23.6% Fibonacci retracement level, calculated from the prior downward trajectory that spanned from the $3,920 swing high to the $3,058 low.

Moreover, a breakout above the bearish trend line with resistance at $3,410 was noted on the hourly chart for ETH/USD. Yet, selling pressure remains strong, particularly below the critical $3,500 level and the 50% Fibonacci retracement point of the earlier downward move.

Currently, Ethereum is trading beneath the $3,400 mark and the 100-hourly Simple Moving Average. Should a recovery wave occur once more, it is likely to face resistance around the $3,450 level, with the next significant resistance identified at approximately $3,480.

The primary resistance level to watch is around $3,500. A decisive move above this resistance could propel the price towards $3,550. Should Ethereum break through the $3,550 barrier, further gains would likely follow, potentially pushing the price toward the $3,740 resistance zone or even reaching as high as $3,800 in the short run.

Caution: Potential for Further Decline?

Should Ethereum struggle to overcome the $3,480 resistance level, it may trigger another decline. Initial support is found near the $3,320 level, while the first major support sits around $3,260.

A significant breach below the $3,260 support could lead to a further decline, targeting the $3,150 support area. Any additional losses may see the price approach the $3,050 region. The next critical support levels are established at $3,020 and $3,000.

Technical Indicators

Hourly MACD – The MACD for ETH/USD indicates a loss of momentum within the bearish zone.

Hourly RSI – The RSI for ETH/USD is currently positioned above the 50 mark.

Major Support Level – $3,260

Major Resistance Level – $3,500