Ethereum Plunges Below $3,000, Bearish Sentiment Takes Hold

Ethereum’s price recently stumbled, failing to maintain its position above the crucial $3,000 mark. The cryptocurrency has since entered a bearish phase, signaling potential further dips if current trends persist.

ETH Price Dives Below Key Levels

ETH initiated a fresh decline, breaking below $3,000 and then $2,980. This downturn saw the price fall beneath the 50% Fibonacci retracement level, calculated from the $2,775 swing low to the $3,075 high. A significant technical breach occurred with the breakdown of a rising channel that had provided support at $2,980 on the hourly chart. Currently, Ethereum is trading below both $2,980 and its 100-hourly Simple Moving Average, underscoring the shift in market sentiment.

Critical Resistance and Support Zones

Looking ahead, immediate resistance for Ethereum is noted near $2,980, with stronger resistance points at $3,000 and then $3,050. A sustained push above the $3,050 level could potentially propel the price towards $3,120, and even up to $3,200-$3,220 in the near term. Conversely, if ETH fails to overcome the $3,000 resistance, it risks further declines. Initial support lies around $2,880, aligning with the 61.8% Fib retracement level. Key downside targets include $2,845, $2,800, and potentially $2,775, with the next major support firmly placed at $2,720.

Technical Indicators Confirm Downtrend

Technical indicators reinforce the prevailing bearish outlook. The Hourly Moving Average Convergence Divergence (MACD) for ETH/USD is showing increasing bearish momentum, while the Hourly Relative Strength Index (RSI) has dropped below the 50 zone, indicating a weakening buying interest. Investors should closely monitor these levels as Ethereum navigates this critical period.