In the fluctuating world of cryptocurrency, Ethereum (ETH) has recently been showcasing a downward shift, sending ripple effects of unease through the market. Tracing an unsettling pattern of bearish signs under the support threshold of $3,840, the currency could potentially sink deeper into bearish territory if there is a decisive drop below $3,700.
Ethereum’s journey has been one marked by sudden highs and uncomfortably low dips. The digital currency, demonstrating a bearish tendency, extended its fall, sampling the depths of the $3,700 zone. The current price activity reveals that Ethereum is trading below both $3,840 and the 100-hourly Simple Moving Average. A powerful symbol of the bear’s influence was a break below a formerly bullish trend line that supported near $3,780 on the hourly chart of ETH/USD.
Although Ethereum’s bearish dip has been striking, it’s not entirely out of the race yet. The currency could potentially revive its upward trend if it can resist settling below the $3,700 support line.
Despite attempting to embark on a revitalizing increase, Ethereum has grappled with stagnancy above the $3,850 resistance zone. It faltered when it came up against the 50% Fib retracement level of the downward wave, traveling from the heady swing-high of $3,958 to the sobering low of $3,702.
The price of Ethereum experienced a notable rejection pattern beneath the $3,800 level, unlike Bitcoin, its more successful counterpart. This led to the price dipping below the $3,780 level, following which Ethereum broke the bullish trend line, moving below $3,840 and the 100-hourly Simple Moving Average.
Examining potential scenarios, if Ethereum does manage to rally and surge upward, it might come up against its first major resistance near the $3,840 level. However, if Ethereum successfully shatters the $3,840 resistance cap, it could galvanize the price, propelling it towards the next imposing resistance at $3,900 or the 76.4% Fib retracement level of the downward wave.
Should the market bulls drive Ethereum to rise above the $4,000 demarcation, the price could continue its climactic ascent, testing the $4,080 resistance. Further gains from this point could potentially catapult Ethereum toward the lucrative resistance zone of $4,220.
However, if Ethereum falters at the crucial $3,840 resistance line, it could trigger another decline. The first support line on the way down is located near the $3,730 level. If Ethereum descends further, it could find itself grappling with the next major support near the $3,700 zone. A definitive plunge under the $3,700 support might corner Ethereum into the $3,660 area. Further losses could potentially force a slide towards the $3,550 level in the near term.
While supporters continue to back Ethereum’s potential, its current technical indicators do reflect a growing strength in the bearish zone. The MACD for ETH/USD is steadily gaining momentum, while the RSI for ETH/USD has slid below the balanced zone of 50. This bearish undertone underpins the major support level of $3,730 and the resistance level of $3,840. The performance trajectory of Ethereum, as it navigates these testing times, is sure to be watched intently by cryptocurrency enthusiasts and investors alike.
