Investors closely following the cryptocurrency market have expressed concern and speculation in response to recent developments in the Ethereum market. Despite attempts, Ethereum’s price has been unable to surpass the resistance zone at $3,280 and has now fallen below the $3,200 support level. Currently, it is consolidating losses above $3,100.
Ethereum Price Approaches Critical Support
The inability of Ethereum to overcome the resistance levels at $3,250 and $3,280 has created a noticeable hurdle in the market. The price, which is now trading below $3,200 and has dropped below the 100-hour Simple Moving Average, has raised concerns among investors.
ETH in a Downtrend
As Ethereum continues to struggle with the resistance levels at $3,250 and $3,280, a new downtrend has emerged. The price has fallen below the $3,200 support, signaling a short-term downtrend.
Particularly, the break below the important ascending trend line at $3,190 on the ETH/USD four-hour chart has caused concern in the market. The price has retreated to around $3,150, testing the $3,100 level. However, some stability has been achieved at a low of $3,105, and the price is currently consolidating losses at these levels.
Critical Resistance Levels
The immediate resistance level lies around $3,180, just below the 100-hour Simple Moving Average. The first major resistance is near the $3,200 level, which is also close to the 50% Fibonacci retracement level of the recent decline at $3,291.
The next key resistance level is at $3,220, and if the price rises above this level, it could potentially aim towards $3,250. A close above the $3,250 resistance would likely lead Ethereum to test the $3,280 resistance. Breaking this resistance could potentially push Ethereum towards the $3,500 resistance zone.
More Declines Could Bring These Levels for ETH
For Ethereum’s price to experience a further downtrend, it must fail to surpass the critical $3,200 resistance. Currently, there is a downward momentum. In this scenario, the first support level is around $3,120. In a larger decline, significant support could be found at the $3,100 region.
The main support point is near $3,030. If the price drops below this level, selling pressure may increase, causing Ethereum to fall to $2,850. Further losses could see the price retreat to as low as $2,650 in the near term.
Disclaimer:
The information provided in this article is not investment advice. Investors should be aware that cryptocurrencies are highly volatile and carry a certain level of risk. Therefore, it is recommended that investors conduct their own research before making any investment decisions.
