Ethereum Faces an Uphill Battle: Can It Overcome the Challenges?

As a seasoned crypto investor with a few years of experience under my belt, I’ve seen Ethereum’s price fluctuations more times than I can count. And right now, it’s testing my patience once again as it extends its decline and tests the $3,720 support zone. The bearish trend is undeniable, with Ethereum trading below $3,820 and the 100-hourly Simple Moving Average.


The price of Ethereum has continued to drop, reaching a support at around $3,720. At present, Ethereum is in a holding pattern, encountering several obstacles as it attempts to rise towards the $3,800 mark.

    Ethereum extended its decline and tested the $3,720 zone.
    The price is trading below $3,820 and the 100-hourly Simple Moving Average.
    There is a new bearish trend line forming with resistance at $3,810 on the hourly chart of ETH/USD (data feed via Kraken).
    The pair could continue to move down if it breaks the $3,720 support.

Ethereum Price Holds Support

As a crypto investor, I’ve noticed that Ethereum’s price has been bearing a short-term bearish trend and dipped below the $3,800 support level, similar to Bitcoin‘s trend. In fact, ETH even plunged beneath the 50% Fibonacci retracement mark of the upward surge from the $3,631 swing low to the $3,975 peak.

As a researcher observing the market trends, I noticed that the bulls demonstrated significant activity around the $3,720 support level. They took measures to safeguard the 76.4% Fibonacci retracement level, which represents a key point of potential price reversal during an upward trend, from the $3,631 swing low to the $3,975 high.

The current price of Ethereum hovers around $3,700 and falls below its 100-hour moving average. Should there be a renewed upward trend, Ethereum may encounter resistance at the $3,800 mark. Moreover, a fresh bearish trendline is emerging on the hourly chart of ETH/USD with resistance at $3,810.

The price encounters its initial significant obstacle around $3,850. Clearing this hurdle could push the price upwards. The subsequent noteworthy resistance lies at $3,890; surmounting this resistance may grant the price momentum and propel it towards $3,950.

Ethereum Faces an Uphill Battle: Can It Overcome the Challenges?

Should Ether surpass the $3,950 mark set by the bulls, its value may continue to climb and challenge the $4,000 resistance point. A successful breach of this level could potentially propel Ether further towards the $4,080 resistance region.

More Losses In ETH?

As a researcher studying the Ethereum market, I would interpret a failure to surpass the $3,800 resistance as potentially leading to further price decreases. Should this occur, initial support for Ethereum could be found around the $3,720 mark.

If we look ahead, the next significant resistance lies around the $3,640 mark. Should the price break below this barrier, it could potentially lead to a drop down to $3,550. Any further declines might result in the price reaching the $3,500 level in the short term.

Technical Indicators

Hourly MACD – The MACD for ETH/USD is losing momentum in the bearish zone.

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

Major Support Level – $3,720

Major Resistance Level – $3,800

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2024-05-31 04:52