Ethereum Plunges Below $3,750: Bears Target $3,550 Amidst Mounting Selling Pressure
Ethereum (ETH) has embarked on a fresh wave of decline, failing to hold crucial support levels and signaling further bearish momentum in the market. The cryptocurrency has dipped significantly below the $3,750 mark and continues to trade under key moving averages, with market analysts closely watching the critical support level at $3,550 as a potential trigger for deeper losses.
Current Market Downturn and Immediate Hurdles
ETH initiated a notable downturn after failing to breach the $3,880 resistance level, subsequently slipping below $3,800, $3,750, and even $3,700, firmly entering a bearish zone. The asset is currently trading beneath both the $3,700 threshold and the 100-hourly Simple Moving Average, indicating a sustained downward trend. Technical analysis reveals a contracting triangle formation on the hourly chart of ETH/USD, with significant resistance pinpointed at $3,650. Despite a temporary low formed around $3,557, the price is consolidating its losses near the 23.6% Fibonacci retracement level, calculated from the recent $3,920 swing high to the $3,557 low.
Resistance Levels and Pathways to Potential Recovery
Should Ethereum attempt a recovery, it faces immediate resistance near the $3,650 level, strengthened by the aforementioned contracting triangle. The next major hurdle lies around $3,740, which also coincides with the 50% Fibonacci retracement level of the recent decline. A clear move above the $3,800 resistance, considered the first major resistance, could propel the price towards $3,880. Sustaining momentum above the $3,880 region might unlock further gains, potentially pushing Ether towards the $4,000 resistance zone or even $4,050 in the near term.
Downside Risks and Technical Indicators
However, the outlook remains precarious. If Ethereum fails to overcome the $3,800 resistance, it could trigger a fresh wave of selling. Immediate downside support is identified near $3,580, with the crucial major support zone resting at $3,550. A decisive break below this $3,550 support could accelerate declines towards $3,500, and potentially as low as $3,420, $3,350, or even $3,320. Technical indicators reinforce this bearish sentiment, with the Hourly MACD for ETH/USD showing increasing bearish momentum and the Hourly RSI currently positioned below the 50 zone, both signaling a weakening market.
