In recent times, the price of Ethereum has once again begun to decrease after a period of stagnant movement. Following a similar pattern, Bitcoin has also experienced a decline, causing ETH to fall below $3,120 and approach the $3,000 mark. If it continues on this downward trajectory, Ethereum’s next hurdle will be breaking below the critical support level of $2,850. However, during these challenging times, Ethereum is facing more than just support level obstacles.
Ethereum Fails to Overcome Critical Resistance
Upon analyzing the charts, it is evident that there is a clear downward trend line visible on the hourly charts, indicating a movement from higher levels to lower levels. It is important to note that the current price is facing resistance around $3,020.
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If Ethereum Continues Its Downward Movement
Amidst uncertainties, Ethereum (ETH) has been struggling recently and warns of further downward movement if it fails to surpass the resistance level of $3,120.
Currently, the ETH/USD pair is continuing its downward movement, with the first support level being around $2,940, close to the channel area. However, a more significant support level is observed near the $2,850 region, with the main support level located around $2,800. A significant drop below this level could potentially push Ethereum’s price towards $2,650 and possibly even as low as $2,540.
What Do Technical Indicators Say?
Technical indicators are suggesting a less than promising outlook for ETH/USD. The hourly MACD is gaining momentum in the bearish zone, indicating a possible downward trend. Similarly, the hourly RSI is currently below the 50 level, indicating an increase in selling pressure.
At this point, there are critical levels that investors should closely monitor. Firstly, the support level of $2,940 could play a significant role. If this level is breached, there could be further downward pressure. Conversely, a breakthrough above the resistance level of $3,120 would be a positive sign for bullish investors, potentially signaling the start of a price increase.
Disclaimer:
This article does not provide investment advice. Investors should be aware that cryptocurrencies are highly volatile and carry inherent risks, and should therefore conduct their own research.
