Ethereum Price Faces Bearish Warning as Momentum Weakens

Ethereum's price attempted to rise but hit a wall near $3,050. Currently, ETH is under pressure and may drift further below $2,900.

Key Takeaways

Ethereum struggled after an upward move, especially above $3,000.
The price is now trading below $2,950 and the 100-hourly Simple Moving Average.
A short-term contracting triangle indicates resistance at $2,930 based on the hourly ETH/USD chart.
A break below the crucial $2,880 zone might signal further declines.

Ethereum Faces New Wave Of Selling

Ethereum Price Struggles to Maintain Gains

Ethereum's price showed an initial recovery, climbing above $2,920 and $2,950, similar to Bitcoin's performance. It even surpassed the $3,000 resistance but encountered strong selling pressure shortly after.

A high of $3,053 was reached before the price retraced, falling sharply below $3,000 and $2,980, with bears driving prices down past $2,950. A low was established at $2,907, and currently, the price is consolidating its losses beneath the 23.6% Fibonacci retracement level calculated from the high of $3,053 to the low of $2,907.

As it stands, Ethereum is trading just above $2,950 and the 100-hourly Simple Moving Average. If buyers can defend against losses below the $2,900 mark, there's potential for another recovery phase.

Immediate resistance can be identified around the $2,940 mark. Moreover, a short-term contracting triangle is forming, with resistance set at $2,930. The first critical resistance is found near $2,955, while the next significant barrier is located around $2,980, closely aligned with the 50% Fibonacci retracement level from the recent downward movement.

Ethereum Price
Source: ETHUSD on TradingView.com

A decisive movement above the $2,950 resistance could propel the price toward the $3,000 level. A breakout beyond this $3,000 range could lead to further gains, possibly targeting the $3,050 resistance or even reaching $3,120 in the near future.

Potential for a Fresh Decline in ETH

Conversely, if Ethereum doesn't manage to overcome the $2,955 resistance, another decline could commence. The first support level on the downside is positioned near the $2,900 area.

Beneath that, the significant support zone lies around $2,880. A break below this support level could push prices down toward the $2,840 support. Further losses could see ETH approaching the $2,800 range, with the next major support likely at $2,720.

Technical Indicators

Hourly MACD – The MACD for ETH/USD is currently gaining momentum in the bearish territory.
Hourly RSI – The RSI for ETH/USD has dipped below the 50 mark.
Major Support Level – $2,900
Major Resistance Level – $2,955