In the dynamic world of cryptocurrencies, Ethereum price has bravely fought against the formidable resistance point of $3,650. It's a fight that appears to be leaning in favor of the resistance point as Ethereum began another decline. The likelihood of steeper declines below the $3,420 support cushion is now in play.
What started as a bullish new day on Wall Street quickly turned into a sharp decline, as Ethereum plummeted below the $3,550 support zone. In the heart of the trading floor, digital signs show Ethereum hovering below $3,540, significantly below the 100 hourly simple moving average.
A grizzly bear appears to have taken over the cryptocurrency market as a crucial downtrend line emerges, stubbornly setting its resistance near the $3,550 mark. Analyzing the hourly chart of ETH to USD conversion, courtesy of real-time data from Kraken, Ethereum could be at risk of further losses if it fails to break this viper nest of resistance at $3,550.
Like its digital cousin, Bitcoin, Ethereum found itself fighting a relentless undertow. High hopes of a resurrection above the resilient $3,550 and $3,580 levels were abruptly dashed. Ethereum remained trapped in a short-term bearish whirlwind, racking up further losses below the harrowing depths of the $3,500 level.
As Ethereum spiraled downward, it broke the $3,450 safety net and fell to a surprising low of $3,428. As it stands, Ethereum's value is curled up inside this low niche, licking its wounds and treading water after the financial turbulence.
There has been a recovery attempt, as Ethereum made a gradual rise above the 23.6% Fibonacci retracement level, going from the recent drop from a high of $3,655 to the distressing low of $3,428. However, Ethereum remains drifting below the $3,550 marker and the 100 hourly simple moving average.
If Ethereum manages to climb higher, it could crash into the resistant glass ceiling at the $3,540 level and the midpoint of the 50% Fibonacci retracement. However, Ethereum also needs to break the estimated uptrend line around $3,550.
If it perseveres and successfully overcomes the thorny resistance at $3,550, the path to higher prices could open for Ethereum. Its next hurdle comes to the $3,650 mark. Overcoming this monumental hurdle could give Ethereum the boost needed to reach heights of $3,720 and even $3,800.
However, lurking ominously is the persistent prospect of further declines in the price of Ethereum. The sword of Damocles hangs precariously overhead of the $3,420 support. If this protective barrier gives way, Ethereum's value is likely to cascade towards the worrying low of $3,350. Further losses would predict a hard landing at the $3,250 level in the near term.
Turning the pages of the technical indicators, there are telltale signs that the bearish zone is losing momentum on the hourly MACD for ETH/USD. Compounding the problems, the RSI for ETH/USD is languishing below the 50 zone, pointing towards a further bearish climate.
