Ethereum’s price continues to experience volatility as it declined below the significant $4,250 threshold. Currently, the cryptocurrency is consolidating at lower levels and faces the potential for further declines if it breaks through the critical support zone of $4,120.
After initially failing to sustain upward movement above $4,550, Ethereum’s value retraced sharply, similar to the movements observed with Bitcoin. The downward trend saw the price descend below other key support levels, including $4,450 and $4,350, ultimately reaching a low of $4,000. Following this drop, Ethereum is now attempting to recover, albeit only slightly, finding resistance just above the 23.6% Fibonacci retracement level of the recent downward movement from $4,636 to $4,000.
Presently, Ethereum is trading below the $4,300 mark and the 100-hourly Simple Moving Average. Resistance appears to be forming around the $4,220 level, with the next significant hurdles at $4,250 and $4,320—the latter being the 50% Fibonacci retracement level from the earlier high to the recent low. A decisive move above $4,320 could lead to a rally towards the $4,360 resistance level. Notably, a bearish trend line on the hourly chart of ETH/USD indicates this as an area of significant resistance.
In contrast, if Ethereum fails to surpass the $4,220 resistance, it may initiate another decline. Initial support remains at the $4,120 zone, with more substantial support found near $4,050. A breach below this level could propel the price down towards the $4,000 mark, and further losses could accelerate towards the next support level at $3,880, with an ultimate target around $3,750.
Technical analysis suggests that momentum is leaning bearish, as indicated by the Hourly MACD gaining traction within the negative zone and the Relative Strength Index (RSI) resting below 50. This landscape highlights the uncertain future for Ethereum, contingent upon its ability to reclaim previous resistance levels or sustain key support.
