Ethereum, the second-largest cryptocurrency by market value, has once again witnessed a price dip after an unsuccessful attempt to rise above the $3,650 resistance. The popular cryptocurrency met strong rejection around this mark, plummeting below key levels of $3,550 to test the $3,320 support zone, charting a pathway similar to that of Bitcoin.
The sudden nosedive saw Ethereum breach crucial support in the $3,500 and $3,450 levels, significantly dropping to a low of $3,324. Yet, displaying the inherent volatile nature of cryptocurrencies, Ethereum is currently showing signs of a recovery wave, having risen slightly above the $3,360 level. At present, the cryptocurrency is struggling around the $3,500 mark, trading beneath the 100-hourly Simple Moving Average.
The immediate resistance for Ethereum’s price lies in the vicinity of the $3,400 level, almost about the 23.6% Fibonacci retracement level from the significant descent from $3,654 to a low of $3,324. If Ethereum manages to push past the first major resistance near $3,420 level and the menacing trend line, another formidable ledge awaits at $3,450. A presumed surge beyond this point would lead Ethereum to quest for the 50% retracement level of the aforementioned dip.
Observers believe the next battle line will emerge close to the $3,520 mark and the 100-hourly Simple Moving Average. Defeating this resistance could imbue bullish momentum into Ether traders, which would bring the $3,650 threshold into speculation. If Ethereum succeeds in breaking free of this resistance, prospects of a bull rally towards the $3,720 zone might gain traction. Further gains could even ignite the possibility of the prized $3,880 test.
However, Ethereum’s journey upwards is littered with many challenges. If it fails to breach the $3,420 resistance, a further descent could be in the works. Downward pressure might bring Ethereum’s price again close to the $3,320 support level. If this support does not hold, Ethereum could slide towards major support near the $3,250 zone.
Further slippage below this level might drag Ethereum into the dangerous vicinity of the next crucial support level at $3,220. A definitive breakdown below this support could cause a dreaded tumble towards the dreaded $3,120 level. Any more losses might compel Ethereum’s price to plunge to the worrying level of $3,040.
Technical indicators for Ethereum currently project a bearish outlook. The MACD on the hourly chart for Ethereum is losing momentum in the bearish zone. Meanwhile, the hourly RSI for Ethereum presently languishes below the median 50 level.
In summary, Ethereum’s journey in the near future is uncertain, bouncing between significant hurdles at the resistance level of $3,420 and the support pegged at $3,220.
