Ethereum's Price Plunge: A Crucial Test for Recovery at $3,200 Ethereum (ETH) has recently experienced a significant price correction, retracting from its $3,400 resistance level. The digital asset is now battling to consolidate its losses and maintain a critical support zone around $3,200, setting the stage for a pivotal moment in its short-term trajectory.
Ethereum's Retreat and Key Support Battles
Following a fresh decline below $3,320, Ethereum’s price entered a bearish zone, trading distinctly below the $3,250 mark and its 100-hourly Simple Moving Average. A notable breach of a bullish trend line at $3,220 on the hourly chart signaled growing selling pressure. The recent dip saw ETH test the $3,180 level, a crucial juncture that will determine its immediate future.
Path to Recovery: Overcoming Resistance
For Ethereum to initiate a fresh uptrend, it must successfully hold above the $3,180 zone. Key resistance levels are identified at $3,230, followed by $3,250 and a more substantial barrier at $3,280. A decisive breakthrough past $3,280 could propel ETH towards the $3,320 resistance, potentially paving the way for further gains to $3,400 or even $3,450 in the near term.
Persistent Downside Risks and Technical Indicators
However, a failure to clear the $3,250 resistance could trigger another wave of declines. Immediate downside support is expected around $3,200, with the primary major support lying at $3,180. Should ETH fall below this critical $3,180 level, it risks sliding further towards $3,120, potentially reaching the $3,050 region, with the ultimate main support pegged at $3,000. Technical indicators currently reflect this cautious sentiment, with the hourly MACD losing momentum in the bearish zone and the Relative Strength Index (RSI) sitting below the 50 zone.
