Ethereum Price Takes a Plunge: Can Bulls Step In?

As a seasoned researcher with years of experience in the crypto market, I can’t help but feel a sense of deja vu looking at Ethereum‘s current price action. The downward trend we’ve been witnessing is reminiscent of a rollercoaster ride, albeit one that seems to be going downhill more often than not.

Ethereum’s price continued its decline, falling under the $3,680 mark. Currently, Ethereum has dropped by more than 7%, displaying bearish tendencies as it hovers around the $3,550 region.

  • Ethereum started a fresh decline below the $3,680 zone.
  • The price is trading below $3,550 and the 100-hourly Simple Moving Average.
  • There is a key bearish trend line forming with resistance at $3,650 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 $3,650 support zone.

Ethereum Price Drops Below $3,650

The price of Ethereum had difficulty breaking higher than the $3,680 mark and followed a downward trend similar to Bitcoin. As Ethereum’s value fell beneath the $3,650 level, it showed signs of a bearish trend, ultimately dropping below $3,600.

The price dropped beneath $3,550 and reached a low of $3,324, then started to stabilize. It’s currently consolidating its losses. Additionally, there’s a significant downward trend line emerging with resistance at $3,650 on the hourly Ethereum-to-US-Dollar chart, suggesting a bearish trend.

Currently, Ethereum’s price is falling short of $3,550 and its 100-hour moving average. As it attempts to rise, it encounters obstacles around the $3,510 mark. This level is approaching the 23.6% Fibonacci retracement mark of the downtrend from the high of $4,105 to the low of $3,324.

Approaching the $3,650 mark, you’ll find significant resistance. Additionally, there’s an important downward trendline developing on the hourly Ethereum-to-US-dollar (ETH/USD) chart, which also serves as a resistance point at $3,650.

The primary barrier is currently shaping up around the $3,715 price point, which is approximately halfway through the decline from the peak at $4,105 to the trough at $3,324. If Ether manages to surpass this resistance at $3,715, it may push further towards the $3,800 barrier. Breaking above $3,800 could potentially lead to additional growth in the upcoming trading sessions. In such a scenario, Ether might aim for the $3,880 resistance area or possibly reach $4,000.

More Losses In ETH?

Should Ethereum be unable to surpass the $3,650 barrier, it might instead trend lower. A potential initial floor can be found around $3,350, with a significant support level lying roughly at $3,320.

If the price drops significantly below $3,320, it could potentially fall towards the $3,250 support. Further declines may cause the price to approach the nearby $3,150 support. The significant support level is currently at $3,050.

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 – $3,320

Major Resistance Level – $3,650

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2024-12-20 06:22