Ethereum's price has entered a fresh downturn, dropping from the $4,700 zone and displaying clear bearish signals. The digital asset is currently at a critical juncture, with analysts closely watching the $4,400 level, a breach of which could trigger a more significant bearish momentum.
Ethereum Price Dips Again
Following a period of testing the $4,320 support, Ethereum attempted a recovery, pushing past the $4,400 and $4,450 resistance levels. This rebound allowed ETH to surpass the 23.6% Fibonacci retracement level of its recent decline from a high of $4,955 to a low of $4,310. However, this bullish resurgence was short-lived. Bears quickly reasserted control around the $4,630 resistance zone, thwarting two attempts by the bulls to gain sustained strength. Consequently, the price has dipped back below the $4,600 mark, breaking a crucial bullish trend line at $4,550 on the hourly chart.
Critical Support and Downside Risks
Currently, Ethereum is trading beneath both the $4,550 level and the 100-hourly Simple Moving Average, indicating persistent bearish pressure. Immediate resistance is anticipated near $4,550, followed by a more substantial barrier at $4,600, and a major resistance point at $4,630. Should ETH fail to clear these resistance levels, the downward trend is expected to continue. The initial critical support lies near $4,440, with the primary major support positioned at $4,400. A decisive close below $4,400 could precipitate further losses, potentially driving the price towards $4,320 and then $4,250 in the near term, with the next key support at $4,150. For a reversal, Ethereum bulls would need to engineer a clear move above the $4,630 resistance, which could then propel the price towards $4,720, and potentially test the $4,800 or even $4,880 resistance zones in upcoming trading sessions. Technical indicators paint a bearish picture: the Hourly MACD for ETH/USD is gaining momentum in the bearish zone, and the Hourly RSI is currently below the 50 level, reinforcing the prevailing negative sentiment. Technical Indicators:
- Major Support Level: $4,400
- Major Resistance Level: $4,550
