Ethereum Faces Downward Pressure, Eyes Critical $4,200 Support Ethereum (ETH) is currently navigating a significant downside correction, having retreated below the $4,550 threshold and showing clear bearish indicators. The cryptocurrency has consistently traded beneath the $4,450 mark and its 100-hourly Simple Moving Average, with a formidable bearish trend line forming at $4,450 on the hourly ETH/USD chart. Market analysts are closely watching the $4,200 zone as a pivotal point for its immediate trajectory. The recent price action saw Ethereum failing to sustain recovery efforts above the $4,650 level, mirroring a similar trend observed in Bitcoin. This bearish momentum pushed ETH below the $4,450 support, with the price eventually testing the $4,220 zone after dropping to a low of $4,228. While a minor rebound has been initiated above the 23.6% Fibonacci retracement level from its $4,581 swing high, the broader trend remains cautious. Looking ahead, the $4,375 level presents immediate resistance, followed by a more substantial barrier at $4,400, which aligns closely with the 50% Fibonacci retracement level of the recent decline. A decisive move above the $4,450 resistance, including the aforementioned bearish trend line, is crucial for any upward momentum towards the $4,550 resistance.
Potential Further Losses for ETH
Should Ethereum fail to surmount the $4,400 resistance, further declines are anticipated. Initial downside support rests at $4,220, with the critical $4,200 zone acting as the first major support. A clear breach below $4,200 could accelerate the price's descent towards $4,150, and potentially extend losses to the $4,050 support level in the near term, with $4,000 marking the next key support.
Technical Indicators at a Glance
- Hourly MACD: The Moving Average Convergence Divergence for ETH/USD is showing increasing momentum within the bearish zone, indicating sustained selling pressure.
- Hourly RSI: The Relative Strength Index for ETH/USD is currently positioned below the 50 zone, reinforcing the bearish outlook.
- Major Support Level: $4,200
- Major Resistance Level: $4,400
