Ethereum's Bearish Battle: Price Trapped Below $3,250 Amidst Mounting Pressure
Ethereum (ETH) is currently experiencing a notable downturn, having initiated a fresh decline after failing to hold above the critical $3,280 resistance level. The cryptocurrency has slipped into a bearish zone, consolidating losses below $3,250 and facing the risk of further drops if key support levels fail to hold.
Price Action and Key Resistance Levels
The ETH price began a sharp downside correction, trading below the $3,250 and $3,220 marks. It is currently positioned beneath the 100-hourly Simple Moving Average, indicating persistent bearish sentiment. A short-term declining channel on the hourly chart signals resistance at $3,210. For any upward momentum, Ethereum would need to overcome immediate resistance near $3,220, followed by the first key resistance at $3,260 and then a major hurdle at $3,280. A decisive breach above $3,280 could potentially trigger a rally towards $3,320, with further gains eyeing the $3,400 to $3,450 range.
Downside Risks and Support Zones
The bears have successfully pushed the price below the 61.8% Fibonacci retracement level, which is calculated from the recent $3,060 swing low to $3,402 high. Ethereum is now consolidating around the $3,160 mark. Should the price fail to clear the $3,220 resistance, a fresh decline is likely. Initial support on the downside is near $3,160, with the first major support sitting around the $3,140 zone, aligning with the 76.4% Fibonacci retracement level. A break below $3,140 could open the doors for a descent towards $3,080, then $3,050, with the ultimate major support level remaining at $3,000.
Technical Indicators Signal Bearish Momentum
The hourly MACD for ETH/USD is showing increased momentum within the bearish zone, reinforcing the downward trend. Concurrently, the hourly Relative Strength Index (RSI) for ETH/USD has dipped below the 50 zone, further confirming the prevailing bearish sentiment in the market. Traders are advised to monitor the $3,160 support closely, as its integrity will be crucial in determining Ethereum's immediate price trajectory.
