Ethereum Grapples with Resistance, Bearish Momentum Threatens Decline Below $3,450

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The cryptocurrency world saw intriguing movement as Ethereum grappled with a stubborn resistance of $3,650, causing it to pare down its gains. As Ethereum showcases hints of a downside break, both investors and skeptics watch closely, noting a possible decline below $3,450.

Emerging from a robust $3,620 resistance zone, Ethereum first harvested gains before realizing a downward shift in its trajectory. Perplexingly, it stooped below $3,550, meandering beneath the 100-hourly Simple Moving Average – an unanticipated turn of events for the day’s trading.

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The narrative of the descent was further spiced by a collapse below a short-term ascending channel. This channel had been offering support for Ethereum at the $3,540 mark with all data harvested from ETH/USD’s hourly chart, thanks to the Kraken data feed.

This development added another cog in the wheel, signaling the growth of bearish momentum. Bluntly put, if Ethereum accompanies itself further into depths below $3,485 and $3,450 support levels, the bears could have a field day.

This rollercoaster ride started off on seemingly high notes as the Ethereum price saw a reasonable surge, breaking the surface above the $3,500 zone. It confidently outpaced Bitcoin, ripping past the $3,550 resistance. However, it ran into a brick wall at the $3,620 level, finding no way to knock on the $3,650 door successfully.

Despite hitting a high of $3,620, Ethereum found itself at a partial loss, needing to trim its gains gradually. A mild slump thrust it below the $3,550 level while also dipping under the 23.6% Fib retracement level. This plunge from grace was particularly stark as it unraveled from an upward swing between a low of $3,351 and a high of $3,620.

Amid all this, Ethereum’s narrative still clung to a strand of hope. While it continued trading under $3,550 – beneath the 100-hourly Simple Moving Average – bullish activity began stirring up near the $3,485 support zone. Concurrently, the 50% Fib retracement level also began scaling up from the $3,351 low to the $3,620 high.

Consequently, a new challenge presented itself. On the upside, Ethereum might encounter resistance close to the $3,520 mark, with the first significant barrier lurking near $3,560.

The major counterforce to Ethereum’s rise is securely stationed at either $3,620 or $3,650. Should there be an upside break soaring above the $3,650 resistance, the price might climb higher, possibly unlocking a key resistance at $3,720.

On the flip side, if Ethereum is unable to topple the $3,560 resistance, it might usher in another decline. The primary support on the downside aligns closely with the $3,485 mark, followed by major support stationed steadfastly at $3,450. And should Ethereum stumble beneath the $3,450 support level, it might be nudged toward the $3,420 mark, and perhaps even lower in the near term.

So, while skeptics foresee more downside for Ethereum, every dawn presents a new day, bringing with it the potential for Ethereum to spring back and soar to new heights. After all, the Wall Street of cryptocurrencies never sleeps.