Ethereum Faces Risky Downward Trajectory Amid Bearish Market Momentum


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.