Ethereum Struggles with Decline as Bulls Lose Momentum

Ethereum's price has entered a new downturn starting from $3,480, with the cryptocurrency now facing the risk of dropping below the $3,250 threshold.

• A fresh bearish trend emerged as Ethereum settled beneath the $3,450 mark.
• The current trading price is lingering below $3,400 along with the 100-hourly Simple Moving Average.
• A new bearish trend line has formed, establishing resistance at $3,380 on the hourly chart of ETH/USD (data sourced from Kraken).
• If the price continues to trade below $3,250, further declines could be imminent.

Ethereum's Price Faces New Dips

After recent fluctuations, Ethereum's price has struggled to maintain a positive trajectory, commencing a fresh decline from the $3,480 level. This movement mirrors the challenges faced by Bitcoin, which has also seen a downturn. Currently, ETH has dipped below both $3,420 and $3,400.

The bears seem to have effectively defended the 50% Fibonacci retracement level, which corresponds to the downward movement from the $3,920 swing high to the $3,058 low. Additionally, a new bearish trend line is forming with resistance noted at $3,380 on the hourly chart for ETH/USD.

Presently, Ethereum is trading below the $3,350 mark and the 100-hourly Simple Moving Average. Should a recovery attempt occur, significant resistance is anticipated near the $3,350 level. The next key resistance level stands around $3,380, closely aligned with the trend line.

The foremost resistance point is located around $3,480. A decisive move above this level might propel the price towards the $3,580 resistance point, coinciding with the 61.8% Fibonacci retracement level representing the drop from the $3,920 swing high to the $3,058 low.

Should there be a breakout above the $3,580 region, this could signal further gains in the upcoming days. In such a scenario, Ether may potentially climb towards the $3,650 resistance zone, or even reach up to $3,675 in the near future.

Will Ethereum See Another Decline?

In the event that Ethereum is unable to breach the $3,380 resistance, a new decline could be on the horizon. The initial support level on the downside appears to be around $3,250, while the first major support zone is situated near $3,220.

A decisive move below the $3,220 support line could lead to a further drop towards the $3,150 support level. Should losses continue, the price could potentially fall to the $3,050 region in the short term, with additional key support levels sitting at $3,020 and $3,000.

Technical Indicators

Hourly MACD – The MACD for ETH/USD is currently gaining traction in the bearish zone.

Hourly RSI – The RSI for ETH/USD has now fallen below the 50 mark.

Major Support Level – $3,250

Major Resistance Level – $3,380