Ethereum Price Back In The Red: A Deeper Drop Ahead?

As a seasoned analyst with years of market experience under my belt, I can’t help but feel a sense of deja vu when I see Ethereum dropping below $3,550 yet again. It seems like we’ve been here before, and it’s not exactly a view I find pleasant.

The cost of Ethereum continued to fall, dipping beneath the $3,550 mark. Currently, Ethereum appears to be exhibiting bearish trends, suggesting a possible drop below the $3,150 support level.

  • Ethereum started a fresh decline below the $3,550 zone.
  • The price is trading below $3,500 and the 100-hourly Simple Moving Average.
  • There is a key bearish trend line forming with resistance at $3,420 on the hourly chart of ETH/USD (data feed via Kraken).
  • The pair could continue to move down if it fails to stay above the $3,550 support zone.

Ethereum Price Drops Below $3,550

The value of Ethereum had difficulty rising beyond the $3,550 mark and followed Bitcoin‘s downward trend, losing ground. As the price fell below $3,450, Ethereum took on a bearish tone and dropped below $3,300.

As a crypto investor, I’ve seen the value plummeting beneath $3,220 and even dipping below the $3,120 mark. The lowest point was reached at $3,100, and currently, we’re in a phase of consolidating our losses. Unfortunately, the closing price fell below the 50% Fibonacci retracement level during the recovery wave from the $3,100 swing low to the $3,553 high.

Currently, Ethereum’s price is dipping below the $3,500 mark and the 100-hour moving average. Additionally, there’s a noticeable downward trend line developing, with resistance at approximately $3,420 on Ethereum’s hourly chart against the US dollar.

Currently, they are checking the 76.4% Fibonacci retracement point in the recovery wave, which stretches from the $3,100 low to the $3,553 high. On the upward trend, it appears there are obstacles around the $3,350 mark. The first significant barrier on the rise can be found at approximately $3,400 level.

As an analyst, I’m observing that the primary hurdle for further price movement is emerging around the $3,420 mark. If we manage to surpass this barrier at $3,420, it could potentially propel Ether’s price towards the next resistance level at $3,500. Should we successfully break through this $3,500 resistance, it might suggest further growth in the upcoming sessions. In such a scenario, Ether could potentially climb toward the $3,550 or even $3,650 resistance zones.

More Losses In ETH?

If Ethereum doesn’t manage to break through the $3,420 barrier, there’s a possibility it might keep falling. A potential floor for its decline could be around $3,200. The significant support level is found close to the $3,120 area.

If the price falls significantly below $3,120, it could potentially drop to the $3,050 support level. Further declines may lead to the $3,000 support in the short term. The crucial support lies at $2,880.

Technical Indicators

Hourly MACDThe MACD for ETH/USD is gaining momentum in the bearish zone.

Hourly RSIThe RSI for ETH/USD is now below the 50 zone.

Major Support Level – $3,120

Major Resistance Level – $3,420

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2024-12-23 06:40