Market Watch: Ethereum Descends Below $3,100

Key Points:

• Ethereum has faced a dip, hitting a low of $3,005 after dropping from a high of $3,220, currently trading under $3,100.
• Key resistances are set at $3,050, $3,080, and $3,120, with a crucial bearish trend line near $3,055, indicating challenges ahead for recovery.

Ethereum’s price has recently fluctuated, fluctuating due to market sentiments and specific technical triggers. Investors and analysts closely monitor Ethereum, a leading cryptocurrency, for signs of trend reversals and potential opportunities.

Ethereum Drops: From $3,220 High to $3,005 Low

Ethereum’s trading pattern has seen a notable high at $3,220, followed by a correction that tested various support levels. The descent began when the price dropped below the thresholds of $3,120 and $3,080, indicating a bearish shift. The price momentarily stabilised around a support level at $3,000, only slightly rebounding to a low point of $3,005.

Currently, Ethereum is trading below $3,100, under the crucial 100-hourly Simple Moving Average, which typically signifies bearish market conditions. The immediate resistance is pegged at $3,050, followed by higher resistance levels at $3,080 and $3,120. These levels correspond to the 23.6% and 61.8% Fibonacci retracement levels, respectively, calculated from the recent high of $3,217 to the low of $3,005.

Key Resistances Ahead: Potential Climb to $3,500

Ethereum faces multiple resistance levels that could hinder any immediate recovery. The key bearish trend line is now near $3,055, just above the current price level. The first major resistance level investors should watch is $3,080, which aligns with the 100-hourly SMA. If Ethereum surpasses these resistance levels, the next significant barriers are $3,120 and higher at $3,200, $3,350, and potentially $3,500.

Downside Risk: Ethereum Could Fall to $2,720

Failure to maintain Ethereum’s price above the $3,055 bearish trend line could lead to testing lower support levels. The immediate support is at $3,000, which, if broken, could see a further decline towards the first major support at $2,950. Further supports are placed at $2,920, and a breach below this level could expose Ethereum to test $2,840, with an extreme downside potential of $2,720. These levels are crucial as they represent strategic points where buyers historically step in, potentially halting further declines.

Technical Trends Suggest Ethereum’s Bearish Outlook

Technical indicators shed light on the underlying market sentiment and momentum. The hourly Moving Average Convergence Divergence (MACD) for Ethereum shows a loss of momentum in the bearish zone, which could presage further declines if the trend continues. Meanwhile, the Relative Strength Index (RSI) is below 50, indicating sellers control the market momentum. Market indicators show trader caution, hinting at potential downside if Ethereum doesn’t reclaim higher resistance levels.