Ethereum's Precarious Position: Bulls Battle to Hold Ground Amid Bearish Pressures
Ethereum (ETH) has entered a fresh period of decline, dipping below the crucial $4,650 threshold and exhibiting clear bearish indicators. While the crypto asset recently attempted a recovery, analysts are warning of potential further drops if it fails to maintain key support levels, suggesting a challenging path ahead for ETH in the near term.
Ethereum's Retreat: Bearish Signals Emerge
Following a test of the $4,260 zone, Ethereum initiated a recovery wave, managing to climb past resistance levels at $4,320 and $4,350. The price even surpassed the 50% Fibonacci retracement level of a significant decline from its $4,660 swing high. However, this recovery proved short-lived. Bears quickly regained control around the $4,480 resistance zone, thwarting two attempts by bulls to push the price above $4,500. Currently, Ethereum is trading below $4,450 and its 100-hourly Simple Moving Average, with a critical bearish trend line forming resistance at $4,460 on the hourly chart.
Outlook: Further Downside or Potential Rebound?
The immediate challenge for Ethereum lies in its inability to overcome the $4,500 resistance. Should this level remain unbroken, the price could continue its downward trajectory. Initial support is observed near $4,375, with a more significant major support at $4,340. A decisive breach below $4,340 might propel ETH towards $4,320, and sustained losses could push it further down to the $4,260 mark, with the next major support lying at $4,150. Conversely, an upside move would require clearing resistances at $4,450, $4,480, and ultimately the $4,500 major resistance level to signal a potential reversal.
Technical Insights
- Hourly MACD: The Moving Average Convergence Divergence for ETH/USD is currently gaining momentum within the bearish zone, reinforcing the negative sentiment.
- Hourly RSI: The Relative Strength Index for ETH/USD has fallen below the 50 mark, indicating increasing selling pressure.
- Major Support Level: $4,340
- Major Resistance Level: $4,500
