Ethereum has encountered significant challenges in its recent trading, failing to surpass the resistance level of $3,450 and consequently facing a downward trend. Currently, Ethereum is trading below $3,400 and has also moved below the 100-hour Simple Moving Average, indicating a persistent struggle within the market.
After peaking at the $3,450 level, Ethereum entered a notable decline and broke through critical support levels of $3,450 and $3,400. This downturn resulted in a low of $3,213. At present, the price is stabilizing beneath the 23.6% Fibonacci retracement level, which is a reflection of the recent drop from the high of $3,743 to the low point of $3,213. A bearish trend line is also in formation, posing resistance around the $3,340 mark, making it difficult for the cryptocurrency to initiate a rebound above the $3,400 level.
Resistance is increasingly formed at the $3,350 level and the falling trend line. The more substantial resistance zone is at $3,500, with an essential level at $3,475 marking the 50% Fibonacci retracement. A breakthrough beyond the $3,500 resistance could enable Ethereum to aim for higher levels, possibly rising towards $3,550. Should it extend past this level, further gains may drive the price towards the $3,650 or even the $3,720 resistance regions.
Conversely, if the price remains below $3,400, further declines could be anticipated. Initial support is positioned near $3,280, with a significant support level at $3,220. Any movement below $3,220 could lead to future losses, targeting closer support levels of $3,150 and potentially down to $3,050. Attention to these technical indicators reveals a bearish momentum developing, underscoring the challenging environment Ethereum currently faces.
