Recently, the price of Ethereum has once again started to decline after a period of horizontal movement. Along with Bitcoin following a similar trend, ETH fell below $3,120, pushing towards the $3,000 level. The downward trend could continue if it breaks below the critical support level of $2,850. However, Ethereum‘s challenges during these tough times are not limited to support levels.
Ethereum Fails to Overcome Critical Resistance
Examining the charts, a clear downward trend line is noticeable on the hourly charts, indicating movement from previous high levels to lower levels. However, it is important to note that the current price position faces resistance around $3,020.
In the upcoming period, key resistance levels for Ethereum are also evident. Particularly, a rise above the $3,185 level could signal a potential uptrend. In this case, the $3,250 resistance level could become an important target for Ethereum.
If Ethereum Continues Its Downward Movement
Ethereum (ETH) has been struggling with uncertainties lately and warns of more downward movements if it cannot surpass the resistance level of $3,120.
Currently, the ETH/USD pair continues its downward movement, with the first support level near $2,940 and close to the channel area. However, a larger support is seen near the $2,850 region. The main support level is around $2,800. A sharp move below this level could push Ethereum’s price towards $2,650. Worse, this move could drop the price to around $2,540.
What Do Technical Indicators Say?
Technical indicators show that the current situation for ETH/USD is not very promising. The hourly MACD is gaining momentum in the bearish zone, indicating a possible downward trend. Similarly, the hourly RSI is currently below the 50 level, indicating increased selling pressure.
At this point, there are critical levels that investors should watch. Firstly, the support level of $2,940 could play an important role. If this level is broken, we could face more downward pressure. On the other hand, a break above the resistance level of $3,120 could be a positive sign for the bulls and could indicate that the price may start to rise again.
