Ethereum has recently experienced a notable decline, retreating from the $3,550 resistance level. The cryptocurrency is currently displaying bearish trends, with indications that it could potentially fall below the critical $3,300 level.
The downturn began after Ethereum failed to maintain its position above $3,550. As prices decreased, Ethereum dipped below both the $3,450 and $3,420 support zones, which added to the downward momentum. A significant break below a bullish trend line, previously established around the $3,450 level, has further negative implications. Currently, Ethereum trades under the $3,450 price point and the 100-hour Simple Moving Average, hinting at ongoing bearish sentiment as it tests the crucial $3,300 support level.
As Ethereum ’s price dwindles, it is also hovering above the 76.4% Fibonacci retracement level of its previous upward movement from the $3,225 low to the $3,543 high. On the resistance side, the price encounters challenges around $3,380, with the first major resistance identified near $3,420 and the primary resistance at $3,500. A successful reversal exceeding the $3,500 resistance may open the path for Ethereum to reach $3,550 or higher, potentially targeting the $3,650 and $3,720 levels in subsequent sessions.
Conversely, failure to break through the $3,420 resistance could trigger further declines. The immediate support level to watch lies around $3,320, with major support situated at $3,300. Should the price slip below this key support, it might lead to further losses, dragging Ethereum down to approximately $3,250 or lower, potentially approaching the $3,220 support level and eventually the critical level at $3,110.
Technical indicators currently suggest a strengthening bearish trend, emphasizing the need for traders to stay vigilant regarding forthcoming price movements.
