Ethereum Nosedives Below Key Levels Amid Bearish Market Conditions


In the rapidly evolving world of cryptocurrency, Ethereum (ETH) has experienced a troubling setback in its price trajectory. The digital coin failed to breach the $3,650 resistance mark, sparking a downward spiral in its value. This decline was prompted by the recent decision of the Federal Reserve, which resulted in Ethereum demonstrating a bearish market behavior below the $3,550 mark.

This crypto asset embarked on a fresh descent beneath the supporting area of $3,580. Ethereum’s trading activity, dismayingly, rests below the $3,550 threshold, as well as the 100-hourly Simple Moving Average. To add to the digital currency’s misfortune, a significant bearish trend line has emerged. The resistance against it gravitates around the $3,610 mark, observed on the hourly chart of the ETH/USD pair, sourced from data feeds via Kraken.

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Understanding the dire implications of this situation, if Ethereum continues to dwell beneath the $3,600 resistance zone, it is not improbable to believe that escalating losses could be on the horizon.

Earlier, there was a hopeful surge as the Ethereum price endeavored to initiate a recovery wave above the $3,550 and $3,580 resistance marks. However, Ethereum was unsuccessful in establishing its presence above the $3,650 barrier, precipitating another fall. Paralleling Bitcoin’s trajectory, Ethereum experienced a steady decline beneath the $3,580 threshold.

The descent drove the price beneath the comforting safety of the $3,550 support mark. A further downward thrust brought Ethereum below even the 61.8% Fibonacci retracement level; this, in relation to the optimistic rise from the $3,431 swing low to the $3,655 high.

At present, Ethereum is transacting below $3,550, and the all-important 100-hourly Simple Moving Average. Accompanying this decline is a pronounced bearish trend line with resistance looming around $3,610. Should there be a fresh ascent, the price may encounter resistance near the $3,580 mark.

An important resistance mark lies near the $3,600 level and follows the trend line. A successful breakaway above this resistance could instigate higher prices, the next major hurdle being at the $3,650 mark. If overcome, we could see a surging momentum carrying the price towards the $3,720 level.

Nevertheless, should Ethereum prove incapable of surpassing the $3,600 resistance, a continual downward plunge seems imminent. In such a scenario, the initial support on the decline is approximated at $3,480, abutting the 76.4% Fibonacci retracement of the rise from the $3,431 low to the $3,655 high – the next vital support touches the $3,420 zone.

Additionally, a clear plunge below the $3,420 support could result in the price inching towards $3,320. In the worst-case scenario, if further losses were to occur, Ethereum’s price might tumble towards the $3,250 mark in the foreseeable future.

From a technical standpoint, the MACD (Moving Average Convergence Divergence) for ETH/USD is gaining momentum in the bearish zone, as per the hourly chart. Meanwhile, the hourly RSI (Relative Strength Index) for the ETH/USD pair is currently blooming below the 50 zone. Key support and resistance levels to monitor closely are $3,420 and $3,600, respectively.