Ethereum Price Breaks Under $3K, Charts Flash Fresh Warnings

Overview

Ethereum has experienced a notable decline, breaking below the $3,000 mark following a failure to maintain stability above the $3,200 resistance. As the price consolidates losses, there are concerns about potential further declines, particularly if it slips below the critical $2,880 support level.

Current Price Action

Ethereum’s price initiated a downward correction after failing to hold above the $3,200 resistance level. The decline saw ETH drop below both the $3,150 and $3,120 thresholds, leading the cryptocurrency into a bearish zone. This downturn has seen Ethereum trading below $3,000, as well as beneath the 100-hourly Simple Moving Average.

A significant bearish trend line is forming, with resistance identified at the $3,020 level on the hourly chart of ETH/USD, as per data from Kraken. The price recently tested a low of $2,910 and is currently consolidating below the 23.6% Fibonacci retracement level of the recent downward move from the swing high of $3,367 to the swing low of $2,910.

If Ethereum can maintain its position above the $2,880 zone, it may attempt to rebound. Immediate resistance is observed at $3,020, with further key resistances at $3,080 and $3,120. A decisive move above the $3,120 resistance could potentially propel the price towards the $3,150 resistance level or the 50% Fibonacci retracement of the recent decline.

On the downside, should Ethereum struggle to surpass the $3,020 resistance, a new decline could ensue. Initial support is located near the $2,920 level, with major support identified at $2,880. A clear drop below this support level could lead to a further decline towards the $2,800 support, with additional losses potentially pushing the price down to the $2,750 region. The principal support level is positioned at $2,650.

From author

The current trend in Ethereum’s price demonstrates the volatility and uncertainty that can characterize cryptocurrency markets. The technical indicators suggest a bearish sentiment, with the Moving Average Convergence Divergence (MACD) gaining momentum in the bearish zone and the Relative Strength Index (RSI) falling below the 50 threshold. These factors highlight the challenges Ethereum faces in regaining upward momentum.

Impact on the crypto market

• Ethereum’s failure to maintain levels above $3,200 may influence trader sentiment, potentially leading to increased bearish positions in the market.
• The establishment of a bearish trend line at $3,020 could signal further downside pressure if not overcome.
• The critical support levels at $2,880 and $2,650 will be closely monitored, as breaches could trigger more significant selling activity.
• The current consolidation phase below key Fibonacci levels indicates uncertainty among traders regarding the next price direction.
• Overall, the situation reflects the broader volatility in the cryptocurrency market, which can affect investor confidence and market dynamics.