Ethereum Price Analysis: ETH Struggles to Regain Momentum

Ethereum’s (ETH) price has experienced a significant decline, failing to clear the $3,750 resistance level. As a result, ETH has trimmed its gains and is currently trading at $3,350. The cryptocurrency may struggle to initiate a fresh increase, with several resistance levels standing in its way.

Recent Price Action

Ethereum’s price began a fresh decline from the $3,750 zone, breaking below a connecting bullish trend line with support at $3,675 on the hourly chart of ETH/USD. The pair’s inability to push above the $3,750 resistance level led to a clear move below $3,650 and $3,550. A low was formed at $3,356, and the price is now consolidating below the 23.6% Fib retracement level of the recent decline.

Technical Analysis

Ethereum’s price is currently trading below $3,550 and the 100-hourly Simple Moving Average. On the upside, the price is facing hurdles near the $3,450 level, with the first major resistance forming near the $3,500 level. The main resistance is now situated near $3,550 or the 50% Fib retracement level of the recent decline.

A clear move above the $3,550 resistance might send the price toward the $3,650 resistance. An upside break above the $3,650 resistance could lead to further gains in the coming sessions, potentially pushing Ether toward the $3,750 resistance zone or even $3,880 in the near term.

Potential Downside Risks

If Ethereum fails to clear the $3,450 resistance, it could initiate another decline. Initial support on the downside is near the $3,350 level, with the first major support sitting near the $3,320. A clear move below the $3,320 support might push the price toward the $3,250 support, and any further losses could send the price toward the $3,150 support level in the near term.

Technical Indicators

* Hourly MACD: The MACD for ETH/USD is gaining momentum in the bearish zone.
* Hourly RSI: The RSI for ETH/USD is now below the 50 zone.
* Major Support Level: $3,350
* Major Resistance Level: $3,450

Conclusion

In conclusion, Ethereum’s price is facing significant resistance levels, which may hinder its ability to initiate a fresh increase. The cryptocurrency’s failure to clear the $3,750 resistance level has led to a decline, and it may struggle to regain momentum in the near term. However, a clear move above the $3,550 resistance could lead to further gains, while a failure to clear the $3,450 resistance may result in additional losses.

Source: Newsbtc.com

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