As Ethereum price attempted to break past the $3,885 resistance level, it instead faced a downside correction. Currently, ETH finds itself below the $3,800 mark and risks sliding further towards $3,720. The failure to clear crucial resistance levels has raised concerns among traders and investors alike.
The hourly chart of ETH/USD shows a bearish trend, with the price trading below $3,840 and the 100-hourly Simple Moving Average. Moreover, a key bullish trend line with support near $3,830 has been broken, indicating a potential downward spiral in Ethereum price movements.
Despite the current bearish outlook, there is still hope for a fresh upward move for Ethereum. If the price manages to stay above the $3,720 support level, we could see a reversal in the trend. However, the path to recovery is paved with challenges, with resistance levels near $3,810 and $3,840 posing significant barriers.
Key Support and Resistance Levels
In the event of a bullish momentum, Ethereum price could face the first major resistance near the $3,840 level, followed by a key resistance at $3,920. Breaking past these levels could pave the way for a push towards $4,000 and beyond. On the flip side, failure to clear the $3,840 resistance could lead to further downside movement, with initial support near $3,765 and major support at $3,720.
While the current trend suggests a bearish outlook for Ethereum price, there is still a glimmer of hope for a potential reversal. Traders and investors must closely monitor key support and resistance levels to gauge the future direction of ETH. With technical indicators showing signs of bearish momentum, it is crucial to exercise caution and make informed decisions when trading Ethereum in the volatile cryptocurrency market.
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