Ethereum in Economic Limbo: Battling Bearish Trends, Eyeing $3,320 Recovery

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In the ever-evolving world of cryptocurrency, Ethereum is making waves, although its recent performances hint at bearish undertones. The digital currency has seen its fair share of challenges, extending its depreciations below the critical support zone of $3,320. Now, in a seeming state of economic limbo, Ethereum finds itself in a consolidation period, potentially poised to leap back upward if it can manage to clear that troublesome $3,320 mark.

Ethereum has been navigating through a turbulent sea of bearish influence, sinking below the pivotal $3,320 support zone, much akin to its industry counterpart, Bitcoin. The currency saw its values dip below a shoestring $3,220, bottoming out at a lowly $3,215. However, the storm seemed to quell momentarily, with the digital asset attempting a recovery mission. Surpassing the $3,250 level, Ethereum sampled the 23.6% Fib retracement level, a downward wave marking the fluctuation from the $3,655 swing high to the $3,215 low.


As the cryptocurrency market ebbs and flows, Ethereum maintains its holding pattern below $3,400. The 100-hourly Simple Moving Average seems to indicate a bearish trend. Its immediate obstacle to recovery lies at the $3,320 level, where a major bearish trend line conveniently converges.

However, the journey upward is fraught with resistance. A prominent barrier stands rigid at the $3,350 mark, with a secondary obstacle presenting itself at $3,440. This pair of fortifications coincides with the 50% Fib retracement level, marking the gap between the $3,655 swing high to the $3,215 low. Should Ethereum prevail in its David vs. Goliath endeavor, a potential for test levels at the higher plain of $3,500 looms on the horizon.

Further optimism may present Ethereum with additional resistance levels around $3,550. If it can hurdle this barrier, the digital currency could find itself returning to bullish momentum. In this scenario, Ethereum might notice an upward trend towards the $3,680 marker. If lucky enough to breach the $3,680 resistance, we could see values escalating towards $3,780. Should Ethereum moonshot past these barriers, the door to $3,850 might swing open.

However, should Ethereum falter in its attempt to clear the $3,320 resistance zone, a downward trajectory could see a continuation. Initial indications of descending values rest near the $3,250 level. More considerable support seems to assemble around the $3,220 zone. If values plummet past this point and break through the definitive $3,120 support line, Ethereum might see a drop to lows near $3,040. If the bearish momentum continues to dictate trends, the asset could fetch prices around the $3,000 level.

Turning to technical indicators, the Hourly MACD discloses a loss of momentum in the bearish zone for ETH/USD. Meanwhile, the Hourly RSI illustrates levels now dropping below the 50 mark for ETH/USD. It seems that Ethereum finds its most formidable support at $3,220, while setting its sights on conquering the key resistance levels hovering around $3,320.

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Melinda Cochrane is a poet, teacher and fiction author. She is also the editor and publisher of The Inspired Heart, a collection of international writers. Melinda also runs a publishing company, Melinda Cochrane International books for aspiring writers, based out Montreal, Quebec. Her publication credits include: The art of poetic inquiry, (Backalong Books), a novella, Desperate Freedom, (Brian Wrixon Books Canada), and 2 collections of poetry; The Man Who Stole Father’s Boat, (Backalong Books), and She’s an Island Poet, Desperate Freedom was on the bestseller's list for one week, and The Man Who Stole Father’s Boat is one of hope and encouragement for all those living in the social welfare system. She’s been published in online magazines such as, (regular writer for) ‘Life as a Human’, and Shannon Grissom’s magazine.