Ethereum Price Drops Back: Another Test for Support Levels

As a researcher studying Ethereum‘s market trends, I observed that the Ethereum price was unable to surpass the $3,750 resistance level, resulting in a pullback from its gains. Currently, Ethereum is hovering around $3,350, and it may face challenges in initiating a new upward movement.

  • Ethereum started a fresh decline from the $3,750 zone.
  • The price is trading below $3,550 and the 100-hourly Simple Moving Average.
  • There was a break below a connecting bullish trend line with support at $3,675 on the hourly chart of ETH/USD (data feed via Kraken).
  • The pair could struggle to start a fresh increase above the $3,450 resistance level.

Ethereum Price Dips Over 8%

The cost of Ethereum held steady above the $3,650 mark and continued to climb in a manner similar to Bitcoin. As a result, Ethereum picked up speed and overcame the hurdles at $3,680 and $3,700 resistance points.

As a researcher observing the ETH/USD pair, I noticed that despite several attempts, the bulls were unable to propel the price beyond the $3,750 resistance level. A peak was reached at $3,742, and subsequently, we witnessed a downward trend. There was a noticeable drop below $3,650 and $3,550. Additionally, there was a significant break beneath a supportive bullish trend line, which had previously been established at $3,675 on the hourly chart.

At $3,356, a trough was established, and currently, the price is stabilizing beneath the 23.6% Fibonacci retracement point following the recent downfall from the peak of $3,742 to the bottom at $3,356.

As a crypto investor, I’m currently observing Ethereum trading below $3,550 and slightly below its 100-hour Simple Moving Average. On the upward trajectory, it appears that Ethereum is encountering obstacles around the $3,450 mark. The first significant resistance lies at the $3,500 level, with a more formidable barrier forming near $3,550 or the 50% Fibonacci retracement point of the recent drop from the $3,742 peak to the $3,356 trough.

Breaking above the $3,550 barrier could potentially propel Ethereum’s price towards the next resistance at $3,650. If this level is successfully surpassed, it might indicate further growth in the upcoming periods. In such a scenario, Ether may reach the $3,750 resistance region or even climb as high as $3,880 in the short term.

More Losses In ETH?

Should Ethereum not manage to surpass the $3,450 barrier, there’s a possibility of a new drop in prices. A potential initial floor could be found around $3,350, with a more substantial support level at approximately $3,320.

If the price falls significantly below $3,320, it could potentially drop to the $3,250 support. Further declines may drive the price towards the nearby $3,150 support level in the short term. The major support lies at $3,120.

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 – $3,350

Major Resistance Level – $3,450

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2025-01-08 06:42