Ethereum Price Slips Further Dips May Test Crucial Support Zone
Ethereum Faces Continued Downtrend: What Traders Need to Know
Ethereum Price Trends: Below Key Levels
Ethereum is experiencing a renewed downturn, slipping below crucial levels of $4,600 and $4,500. The cryptocurrency continues its southward trajectory, with potential further declines anticipated in the short term below the $4,250 mark. This downward correction saw Ethereum breaking past the support levels of $4,550 and $4,500, and it’s now trading under $4,450 and the 100-hourly Simple Moving Average.
Bearish Trend Line Impact
A prominent bearish trend line is emerging, offering resistance at $4,385 on the hourly chart of ETH/USD, crucial data sourced from Kraken. This trend could deepen the currency’s losses, with the ongoing decline potentially extending below $4,250.
Ethereum’s Struggle with Bearish Zones
Like Bitcoin, Ethereum’s inability to maintain stability above $4,550 led to its current decline. The cryptocurrency dipped below $4,500 and $4,450, signaling entry into a bearish zone and testing support around the $4,270 mark. Despite a low formed at $4,270, Ethereum is in consolidation phase, with a minor recovery observed toward the 23.6% Fib retracement level, from the $4,760 peak to the recent low.
Resistance Levels and Potential Recovery
Ethereum faces substantial resistance near the $4,385 level, aligned with the prevailing bearish trend line. Further resistance is noted at $4,450 and more critically at $4,510, marking a 50% Fib retracement from recent declines. A successful breach above the $4,510 level may propel Ethereum towards the $4,570 resistance. Breaking past the $4,570 barrier could pave the way for gains, targeting the $4,640 to $4,720 resistance zones.
Key Support Levels to Watch
If Ethereum fails to surpass the $4,450 resistance, the cryptocurrency might experience fresh declines with initial support around the $4,320 level. Significant support is identified at $4,270; a drop below this could lead the price towards $4,250. A further descent might see Ethereum nearing the $4,150 region, with an ensuing critical support level at $4,120.
Technical Analysis: Indicators to Monitor
Investors should be vigilant about key technical indicators:
- Hourly MACD: Currently gaining momentum within the bearish zone for ETH/USD.
- Hourly RSI: Positioned below the 50 zone, indicating prevailing downward pressure.
Major support is poised near $4,320, while significant resistance is encountered around $4,450, crucial indicators for traders navigating Ethereum’s volatile landscape.
