Ethereum has experienced a significant decline, falling below the $3,680 level and continuing its downward trajectory. The cryptocurrency is down more than 7% and now trades below the critical $3,550 level, exhibiting bearish trends.
The price drop began as Ethereum struggled to rally beyond the $3,680 resistance. As the selling pressure increased, Ethereum fell past $3,650 and even plunged under $3,600. The descent continued, reaching as low as $3,324 before entering a phase of consolidation. Currently, Ethereum is trading significantly below $3,550 and is also under the influence of the 100-hour Simple Moving Average. Resistance appears to be forming near the $3,510 level, which aligns with the 23.6% Fibonacci retracement level from the recent high of $4,105 to the low of $3,324.
Key resistance is identified at around $3,650, alongside a bearish trend line developing on the hourly ETH/usd chart. The $3,715 level serves as an additional resistance point, corresponding with the 50% Fibonacci retracement level derived from the price drop between $4,105 and $3,324. A breakthrough above $3,715 could potentially lead Ethereum towards the $3,800 resistance. If this level is surpassed, further gains could drive prices toward the $3,880 area and potentially even reach the $4,000 level.
On the flip side, if Ethereum fails to overcome the $3,650 resistance, further declines may ensue. Initial support is identified near $3,350, followed by a critical level at $3,320. Should the price fall below this support, it could slide towards $3,250 and, in a worst-case scenario, test the $3,150 level. An additional support target is set at $3,050, should losses continue.
