Ethereum's Momentum Fades as Bears Eye Fresh Lows
Ethereum (ETH) has encountered significant headwinds, failing to sustain its upward trajectory above the $4,600 mark and initiating a notable decline. The cryptocurrency is currently grappling with bearish pressure, trading below critical support levels, and analysts warn of potential further losses if key thresholds are breached.
Retreat from Resistance
After attempting to extend gains past $4,620 and $4,650, Ethereum encountered strong resistance near the $4,750 zone, mirroring a similar retreat observed in Bitcoin. This led to a fresh downside correction, pushing ETH below $4,600 and $4,550. A low was established around $4,414, and the price is now consolidating these losses. Adding to the bearish sentiment, Ethereum is trading comfortably below both $4,550 and the 100-hourly Simple Moving Average, indicating a weakening short-term outlook.
Critical Support Levels Under Threat
Despite a minor recovery attempt above $4,500, which barely surpassed the 23.6% Fib retracement level of its recent decline, the bears remain dominant. The $4,550 level acts as a significant resistance point, with subsequent hurdles at $4,585 (representing the 50% Fib retracement) and $4,620. A clear break above these levels is crucial for any meaningful recovery towards the $4,720 or even $4,750 resistance zones. Conversely, if Ethereum fails to breach the $4,550 resistance, it risks another wave of selling. Initial support is found near $4,460 within a short-term rising channel, followed by stronger support at the $4,420 zone. A decisive move below $4,400 could accelerate losses, potentially driving the price towards $4,320, $4,250, and even $4,150 in the near term.
Bearish Technical Indicators
Technical indicators further reinforce the cautionary outlook. The Hourly MACD for ETH/USD is currently gaining momentum in the bearish zone, while the Hourly RSI is positioned below the 50-level, suggesting selling pressure is outweighing buying interest. Traders should closely monitor the $4,420 major support level and the $4,550 major resistance level for definitive clues on Ethereum's next price movement.
