Analysis of Ethereum Price Action

Analysis of Ethereum Price Action

The recent price action of Ethereum has seen a struggle to break above the $3,720 resistance level. Despite attempting a decent increase above the $3,650 zone, ETH spiked above $3,700 before facing resistance from bearish forces. This led to a sharp decline below $3,660 and $3,650 levels, with a low being formed near $3,565.

Presently, Ethereum is trading below $3,650 and the 100-hourly Simple Moving Average, indicating a bearish trend in the short term. There is a key bearish trend line forming with resistance near $3,680 on the hourly chart of ETH/USD, suggesting further downside potential if the price fails to break above this level.

If Ethereum manages to see a fresh increase or a recovery wave, it might face resistance near the 23.6% Fib retracement level from the downward move. The first major resistance is near the $3,640 level, followed by the key resistance at $3,680. Breaking above this level could signal a potential move towards $3,720 and even $3,750.

On the downside, if Ethereum fails to break above the $3,650 resistance level, it could continue to move down. Initial support is near $3,550, followed by the $3,520 zone. The main support sits at $3,500, with a clear move below this level potentially pushing the price towards $3,320 and even $3,250 in the near term.

The Hourly MACD for ETH/USD is gaining momentum in the bearish zone, indicating a potential continuation of the downward trend. The Hourly RSI is also below the 50 zone, further supporting the bearish sentiment in the short term for Ethereum.

Ethereum is currently facing resistance at the $3,650 level and is at risk of further losses if it fails to break above key resistance levels. Traders and investors should closely monitor the price action and key support levels to gauge the potential direction of Ethereum in the coming days.

Ethereum

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