Recent developments in the Ethereum market have caused concern and speculation among investors closely monitoring the cryptocurrency world. Ethereum‘s price failed to overcome the resistance zone at $3,280 and has fallen below the $3,200 support level. It is currently consolidating losses above $3,100.
Ethereum Price Approaches Critical Support
Ethereum’s difficulty in surpassing the $3,250 and $3,280 resistance levels has created a noticeable resistance atmosphere in the market. The price, trading below $3,200 and dropping below the 100-hour Simple Moving Average, has raised concerns among investors.
ETH/USD’s hourly chart shows a significant break below the $3,190 support, indicating that bears are gaining strength. If the pair trades below the $3,100 support, there is a fear that the downward movement may continue.
ETH in a Downtrend
With Ethereum struggling to surpass the $3,250 and $3,280 resistance levels, a new downtrend has begun. ETH has fallen below the $3,200 support, entering a short-term downtrend.
Particularly, a break below an important ascending trend line at $3,190 on the ETH/USD four-hour chart is causing market concern. The pair has retreated to around $3,150, testing the $3,100 level. However, some stability was achieved at a low of $3,105, and the price is currently consolidating losses at these levels.
Critical Resistance Levels
The immediate resistance level is around $3,180, just below the 100-hour Simple Moving Average. The first major resistance is near the $3,200 level or close to the 50% Fibonacci retracement level of the recent decline at $3,291.
The next key resistance is at the $3,220 level, and a rise above this level could see the price aiming towards $3,250. If a close above the $3,250 resistance occurs, Ethereum is likely to test the $3,280 resistance. Breaking this resistance could potentially lead Ethereum towards the $3,500 resistance zone.
More Declines Could Bring These Levels for ETH
Cryptocurrency Ethereum’s price could be in a further downtrend as long as it fails to surpass the critical $3,200 resistance. Currently, there is a downward momentum. In this scenario, the first support is around $3,120. In a larger decline, significant support could be provided at the $3,100 region.
The main support point is near $3,030. If it drops below this level, selling pressure could increase, pulling Ethereum down to $2,850. Further losses might see the price retreating to as low as $2,650 in the near term.
