Ethereum Faces Price Rejection at Critical Resistance, Deeper Correction Looms
Ethereum (ETH) recently attempted a recovery, pushing past the $3,950 mark, but encountered significant resistance, failing to breach the crucial $4,050 level. This rejection has led to a fresh decline, with ETH now trading below $4,000, signaling a potential for further downside correction.
Failure to Sustain Upward Momentum
Following a period of recuperation that saw Ethereum surpass $3,880 and $3,980, mimicking Bitcoin's own recovery efforts, the cryptocurrency showed initial promise. It even managed to clear the 50% Fibonacci retracement level of the downtrend from its $4,292 swing high to the $3,677 low. However, strong bearish pressure near the $4,080 resistance zone prevented any sustained upward movement. The price ultimately failed to settle above the 61.8% Fibonacci retracement level, triggering a fresh downturn that broke below the $4,000 threshold and a key bullish trend line at $3,960 on the hourly chart. Currently, Ethereum is trading below both $3,960 and the 100-hourly Simple Moving Average.
Key Levels to Watch: Resistance and Support
On the upside, immediate resistance for Ethereum lies near $3,980, followed by a more significant hurdle at $4,050. The primary major resistance stands at $4,080. A decisive break above this $4,080 mark is essential for any renewed bullish momentum, potentially sending the price towards $4,120, and possibly even $4,220 or $4,250 in the near term. Conversely, if Ethereum struggles to overcome the $3,980 resistance, a fresh decline could commence. Initial downside support is found near $3,860, with the first major support zone around $3,840. A clear move below $3,840 could accelerate losses, pushing the price towards $3,820, and potentially as low as the $3,680 region, with the next critical support at $3,620. Technical indicators reinforce a bearish outlook, with the hourly MACD showing increasing momentum in the bearish zone and the hourly RSI currently below the 50 mark.
