Ethereum Faces Risky Downward Trajectory Amid Bearish Market Momentum

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Ethereum, one of the premier cryptocurrencies, seems to be on the verge of an economic misstep, as its price has extensively plunged below the previously firm support line of $3,800. Currently, the crypto giant is now aimlessly hovering near the $3,720 support, with the prospect of any fresh increase remaining scant.

The observable trend in Ethereum’s economic trajectory has taken a downturn as the currency found it immensely challenging to maintain a steady stance above the $3,880 zone. Currently, Ethereum is being traded below $3,880 as well as the 100-hourly Simple Moving Average.

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Compounding matters further for Ethereum is a formidable bearish trend line that is stealthily carving out a resistance at $3,800 on the hourly chart of ETH/USD. Consequently, the cryptocurrency may spiral further down if it can’t withstand the $3,720 support, which is the pair’s current position.

Recently, Ethereum has been dealt a significant blow, with the start of a downside correction that slunk below the $3,880 support zone. Mirroring the movements of Bitcoin, Ethereum seemed to have lost its momentum. A conspicuous dip was noted below the benchmarks of $3,850 and $3,800, deflating the once buoyant cryptocurrency into a short-term bearish zone.

Adding to the economic precariousness faced by Ethereum, there was a stark reduction below the 50% Fib retracement level of the upward surge that began from the $3,630 low and reached a high of $3,974. Alas, the price nosedived below the $3,780 mark, setting the stage for the bears who are now strategizing a move towards the $3,720 support.

Currently, Ethereum is still trading above $3,800, and the 100-hourly Simple Moving Average. However, the possibility of further scaling the financial ladder is hampered by the existence of the bearish trend pressing against the $3,800 resistance line on the hourly chart of ETH/USD.

Resistance around the $3,840 level proves a key challenge. If Ethereum manages to surpass this and break above, the price might surge upwards. The next significant resistance is at $3,900, and if that is conquered, Ethereum can gain momentum. The currency can potentially rally towards the $3,940 mark, and if it breaches this level, Ethereum might test the $4,000 resistance. If this occurs, it could stimulate a positive market reaction that could elevate the Ether towards the $4,080 resistance zone.

However, the future remains uncertain. Ethereum risks continuing its downward trajectory if it fails to clear the $3,800 resistance. The initial support downside is located near $3,720. A downward wave risks potential support near the $3,625 zone, which if compromised, might push the price towards $3,550. Any further reductions might result in a plummeting value towards the impending $3,500 level.

Hourly MACD indicates that ETH/USD is gaining momentum in the bearish zone while the hourly RSI denotes that ETH/USD is currently below the 50 zone. In conclusion, Ethereum stands at a crucial crossroads with the major support level being $3,720, and the significant resistance level at $3,800.