Amidst a challenging economic climate, Ethereum, a rising star of the cryptocurrency world, is battling to regain its footing above the formidable $3,440 resistance zone. Recent patterns have indicated a downward slip, inciting concerns of a possible further decline unless it manages to hold onto the crucial $3,250 support level.
Previously, Ethereum struggled to ascend beyond the significant $3,370 and $3,440 levels, consecutively. It is currently hovering below the $3,380 mark as well as the 100-hourly Simple Moving Average, seemingly swept into a downward current. Adding to the market turbulence, Ethereum experienced a break beneath a major bullish trend line which had been offering support at $3,300. This break in the trend line has been noted on the hourly chart of the ETH/USD data feed via Kraken.
This dip in value may ultimately lead to an extended period of losses should Ethereum slip below the $3,250 support zone.
In a recent effort to regain its momentum, Ethereum embarked on a fresh recovery wave, attempting to break above the $3,300 and $3,320 levels, similar to Bitcoin’s trajectory. It even managed to scale above the $3,400 mark, however, fierce resistance was met at the $3,440 zone. This energetic display ultimately saw a high formed close to $3,443 before a fresh decline was experienced.
As Ethereum continued to meet resistance, it dipped beneath a major bullish trend line that had been offering ardent support at $3,300. The losses were consolidated as Ethereum retraced its steps to retest the stability of the $3,250 support. Consequently, Ethereum hit a low of $3,253 before steadying itself to steady the losses.
With a current trading zone just above the 23.6% Fib retracement level of the downward wave, from the $3,443 swing high to the $3,253 low, Ethereum is once again trading below the $3,380 mark, as well as the 100-hourly Simple Moving Average.
Analyzing the market, the first line of significant resistance awaits near the $3,320 level, with another at the $3,350 level which is also the 50% Fib retracement level of the downward wave. Pushing the ceiling, the next significant resistance resides at $3,440. Should Ethereum overcome this hurdle, it could seek confirmation at the $3,500 level.
Meanwhile, the next key resistance is penciled in near the $3,550 level. Should Ethereum cross this Rubicon, it could trigger bullish momentum which could drive the price towards the elusive $3,650 zone. An optimistic scenario sees Ethereum surging towards the $3,750 mark, breaking through the $3,650 resistance.
However, Ethereum’s fortunes could swiftly alter should it falter at the $3,350 resistance level. This could propel it into a downward trajectory. The first line of support stands near the $3,250 mark, with significant support near the $3,220 zone. Losing grip on this could send Ethereum cascading towards the $3,200 zone. A clear break beneath the wall of $3,200 support could trigger a free fall towards the $3,120, and further loss may send Ethereum spiraling towards the $3,040 level.
In the realm of technical indicators, the Hourly MACD reveals that the MACD for ETH/USD is gaining speed in the bearish territory. Compounding this, the Hourly RSI shows the RSI for ETH/USD is currently below the 50 level.
Indeed, with Ethereum’s struggle to reclaim its territory above the $3,440 resistance zone, the cryptocurrency star is in the throes of a fiercely competitive market. Time will tell if it manages to scale the formidable resistance at $3,440 or if it slides further down the slippery slope.