Ethereum price faces resistance with a challenging path ahead. The price experienced a significant drop, testing the support zone at around $3,580.
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Ethereum Price Faces Resistance
After hitting a low near $3,574, ETH is now attempting to recover, similar to Bitcoin. However, it encounters multiple resistance levels near the $3,740 zone. Recently, Ethereum extended its downward trajectory, falling below the $3,660 support zone.
https://coinmarketcap.com/currencies/ethereum
The decline continued past $3,600 until the bulls stepped in. A low was formed at approximately $3,574, and the price is now in the process of correcting these losses. There was an upward move that brought the price above the $3,650 and $3,660 levels. Ethereum managed to climb past the 50% Fibonacci retracement level of the decline from the $3,838 swing high to the $3,574 low.
However, the price couldn’t close above the $3,700 level. Currently, Ethereum is trading below $3,740 and the 100-hour Simple Moving Average. If the price increases again, ETH is likely to encounter resistance around the $3,700 level.
Key Bearish Trend Line
The first significant resistance is near the $3,740 level. Additionally, there is a key bearish trend line forming with resistance near $3,740 on the hourly chart of ETH/USD. This trend line aligns closely with the 61.8% Fibonacci retracement level of the decline from the $3,838 swing high to the $3,574 low.
https://www.tradingview.com/symbols/ETHUSD
An upward break above the $3,740 resistance could propel the price higher. The next key resistance is at $3,800, beyond which the price may gain momentum and rise toward the $3,840 level. If the bulls manage to push Ether above $3,840, the price could surge to test the $4,000 resistance. Further gains might drive the price toward the $4,080 resistance zone.
Possible Decline in ETH
If Ethereum fails to surpass the $3,740 resistance, it might continue its downward movement. The initial support on the downside is near $3,660, followed by the next major support at approximately $3,640.
The primary support is situated around $3,580. A decisive move below this support level could push the price toward $3,500. Further losses might lead Ethereum to test the $3,450 level in the near term.
Conclusion
To conclude, Ethereum price faces resistance with a challenging path ahead, testing the support zone near $3,580. Despite recent recovery attempts, failure to surpass this resistance could lead to further declines, with key support levels at $3,660, $3,640, and $3,580. Traders are advised to monitor these levels closely as they navigate Ethereum’s price movements in the coming days.
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