Ethereum Stumbles Below $3,250, Faces Resistance at $3,320 Amid Bearish Trend

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The price of Ethereum, a popular digital currency, recently stumbled, failing to surpass the $3,520 mark, sparking a new and sharp decline in its value. This drop plunged its trading value below the critical $3,250 support line, prompting it to brush against the challenging $3,150 zone.

In the wake of this dive, the currency started another descent, slipping below both the $3,320 and $3,250 levels. Currently, it is trading beneath the $3,250 line and the 100-hourly Simple Moving Average, a key metric used by traders. Further adding to these challenging indicators, a key bearish trend line — bearing resistance close to $3,325 — has started to form on Ethereum’s hourly chart.

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While the pair may attempt to correct these losses, analysts speculate that any potential recovery may face limitations above the $3,320 zone.

The recent fall in Ethereum’s price was marked by it failing to break through the resistance levels of $3,450 and $3,420, thus igniting a fresh wave of decline that pulled it below the support zone of $3,320, a pattern similar to the concurrent trading trajectory of Bitcoin. During this decline wave, Ethereum’s value plunged below the $3,250 and $3,220 levels, recording a substantial 5% loss, even testing the strength of the $3,150 support threshold.

After reaching a low at $3,156, the digital currency’s value is now on a course of consolidating losses, showing upwards movement past the $3,200 level, and is currently testing the 23.6% Fibonacci retracement level, calculated from the drop from a high point at $3,426 to its recent low at $3,156.

Ethereum’s value, currently trading below the $3,300 line and the critical 100-hourly Simple Moving Average, may face imminent resistance close to the $3,250 mark if a recovery wave materializes. The first major potential roadblock appears at the $3,300 mark, which also corresponds to the 50% Fibonacci retracement level of the latest major drop.

Additionally, there’s a key bearish trend line forming resistance near the $3,325 mark, a further impediment on the hourly chart of Ethereum. Beyond this lies a significant obstacle at the $3,365 mark. A recovery above this mark could propel Ethereum towards the resistance at $3,450. Beyond that, a resistance zone looms at $3,500, and any push past this zone could catapult the cryptocurrency to another key resistance zone at $3,550.

However, should Ethereum fail to clear the $3,320 resistance, it could likely face a continued downfall. The initial defense lies near the $3,200 mark, with the primary line of support stationed around the precarious $3,150 zone. Any further dip below this zone could push Ethereum’s trading value towards a damaging low of $3,080, leading to potential losses looming at the $3,050 mark in the foreseeable future.

The bearish tendencies are evident in the technical indicators as well. The hourly Moving Average Convergence Divergence indicator for Ethereum shows momentum gathering in the bearish zone while the Relative Strength Index signals Ethereum dipping below the crucial 50 zone. As such, Ethereum’s major support hovers around the $3,150 level, with its substantial resistance stationed near the $3,320 mark.