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Ethereum has experienced a slight setback in its recent attempts to push past the critical resistance level of $3,220. Despite its efforts, Ethereum’s price is on a slow descent, currently making its way towards the $3,060 support mark. Unlike Bitcoin, which has seen successful breaches of its respective resistance zones, Ethereum has struggled to maintain momentum, indicating a consolidation phase with clear hurdles around the $3,200 mark. The current trading position is beneath the vital $3,120 price point and below the 100-hourly Simple Moving Average—a bearish signal for short-term traders. A key bullish trend line is evident, with support at $3,070 on the hourly chart, suggesting that Ethereum might still have a chance to rebound if it can breach the $3,120 resistance zone.
The recent price dip came after Ethereum failed to break above the $3,220 resistance, triggering a decline beneath the support levels of $3,150 and $3,120. This downward movement saw the price test the $3,070 mark, dipping slightly below to form a low at $3,069 before entering a phase of consolidation. Interestingly, the price also tested the 23.6% Fibonacci retracement level of its recent drop from the $3,224 swing high to the $3,069 low. This scenario underscores the importance of the $3,120 level and the 100-hourly Simple Moving Average as crucial bearish indicators. Although there’s a bullish trend line offering some support, the resistance near $3,120 and subsequent levels at $3,150 (50% Fib retracement) and the major $3,220 point is a challenging hurdle to overcome.
If Ethereum manages to rally past the $3,220 resistance, it could ignite a fresh uptrend towards the $3,350 mark, potentially escalating to the $3,500 resistance zone. Such a move would be critical in reversing the current bearish sentiment and signal a strong market confidence in Ethereum’s short-term prospects. However, this optimistic scenario hinges on Ethereum’s ability to overcome immediate resistances, a task that has proven difficult amidst the prevailing market conditions. The market is watching closely, as a successful break above these levels could lead to increased gains in the upcoming sessions, offering a lucrative opportunity for investors and traders alike.
Conversely, failure to surpass the $3,150 resistance could spell further trouble for Ethereum, possibly triggering another downtrend. The initial downside support rests near the $3,060 trend line, with a more significant support zone around the $3,000 mark. Dropping below this critical support might push Ethereum’s price down to $2,880, and potentially to even lower supports at $2,740 and $2,650 in the near term. Technical indicators, including the hourly MACD and RSI, are already showing increased bearish momentum and a decline below the neutral 50 zone, respectively. These signals, coupled with Ethereum’s struggle to hold above major support levels, suggest that caution among investors and traders is warranted. As the digital currency navigates through these volatile times, the coming days are crucial in determining its short-term direction on the market.
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