Ethereum Faces Downward Pressure, Key Support Levels Tested
Ethereum (ETH) has recently experienced a significant price decline, breaking below critical thresholds of $4,600 and $4,500. This bearish trend indicates a potential for further losses, with analysts closely watching the $4,250 mark as a crucial short-term support zone. The cryptocurrency's current trajectory suggests a challenging period for investors as momentum fades and resistance mounts.
ETH Price Dips Further: A Bearish Outlook
Following its inability to hold above the $4,550 level, Ethereum initiated a fresh downtrend, mirroring similar movements seen in Bitcoin. The price rapidly fell through $4,500 and $4,450, pushing it into a distinctly bearish zone. It tested the $4,270 zone, with a low established at $4,270. While a minor recovery attempt brought it towards the 23.6% Fibonacci retracement level of the recent swing from $4,760 to $4,270, bears remain dominant near the $4,380 and $4,385 resistance levels, also marked by a key bearish trend line on the hourly chart. Currently, ETH is trading below $4,450 and the 100-hourly Simple Moving Average, signaling continued weakness.
Navigating Critical Resistance and Support
For Ethereum to reverse its current slump, it must overcome immediate resistance levels, starting with the $4,385 trend line and the $4,450 mark. A successful breach above these could propel the price towards $4,510 (50% Fib retracement) and potentially $4,570. Sustained upward movement past $4,570 might open the door for gains towards $4,640 or even $4,720. Conversely, a failure to clear the $4,450 resistance would likely extend the decline. Initial downside support is found near $4,320, with the first major support at $4,270. A decisive break below $4,270 could push ETH towards $4,250. Should this level fail, further losses targeting the $4,150 region and potentially $4,120 could be on the horizon. Technical indicators such as the Hourly MACD and RSI are currently signaling bearish momentum, with the RSI below the 50 zone, reinforcing the prevailing downward pressure.
