Ethereum ’s price has seen a downturn, dropping below the crucial $3,880 level. After a brief attempt to recover, ETH is currently encountering resistance near the $3,800 area. This correction comes in the wake of a broader trend observed across the cryptocurrency market, mirroring the declines seen in Bitcoin .
Following an inability to maintain its position above the $4,000 level, Ethereum initiated a corrective phase. Initially, the price moved beneath support levels at $3,880 and $3,800, briefly dipping to a low of $3,488. However, the cryptocurrency has since shown signs of recovery, moving up past the $3,550 and $3,620 levels. Notably, it tested the $3,700 range, aligning with the 50% Fibonacci retracement of the decline from a recent high of $4,017 to the low point.
Presently, Ethereum is trading below the $3,880 level and the 100-hourly Simple Moving Average, which indicates a bearish sentiment in the short term. The immediate hurdles are situated around $3,780, with the primary resistance identified near $3,800. Additionally, a bearish trend line has formed around $3,815, coinciding with the 61.8% Fibonacci retracement level of the aforementioned downward movement.
For Ethereum to regain upward momentum, it would need to achieve an effective breach of the $3,880 resistance. A successful breakout above this level could pave the way for a rise towards $4,000 and potentially even higher levels, such as $4,050 or $4,120. Conversely, if ETH fails to overcome the $3,780 barrier, it may face renewed selling pressure. Initial support is located around $3,620, with significant support levels at $3,560 and $3,480, and further declines could see the price test lows around $3,350 and $3,250.
Technical indicators currently suggest a weakening momentum in the bullish territory, hinting at a cautious outlook for Ethereum in the near term.
