Ethereum Price Retreats to $3,200: Initial Recovery Challenge Looms

Ethereum’s price is experiencing a notable decrease following a resistance point at $3,400. Currently, ETH is consolidating its losses and finding key support at $3,200.

Key Takeaways

Ethereum has undergone a correction, dropping below $3,320.
The current trading price is below $3,250 and below the 100-hourly Simple Moving Average.
A significant bearish trend line was broken, dropping below a support level at $3,220 according to the hourly ETH/USD chart.
Ethereum could see a rebound if it maintains stability above the $3,180 mark.

Ethereum Price Falls Back

Ethereum Price Adjusts to Key Support Levels

After failing to sustain its position above $3,300, Ethereum began a new downward trend, mirroring Bitcoin's movements. The ETH price fell below key ranges of $3,280 and $3,250, plunging into a bearish territory.

This decline included breaking below a bullish trend line with a support level at $3,220 on the hourly ETH/USD chart. Furthermore, the price dipped below the 50% Fibonacci retracement level, calculated from the recent swing low of $3,060 to the high of $3,402, ultimately reaching a low of around $3,180.

Currently, Ethereum is trading below $3,250 and the 100-hourly Simple Moving Average. If bulls manage to defend against further losses below $3,180, near the 61.8% Fibonacci retracement level of the aforementioned wave, there exists a possibility for a future price increase.

Ethereum Price Chart
Source: ETHUSD on TradingView.com

Immediate resistance is found close to the $3,230 level, with the first significant resistance at $3,250. The next notable resistance level is around $3,280. Should Ethereum clear the $3,280 resistance, it could rally towards the $3,320 mark, and further breaking above this could propel the price to the $3,400 resistance zone, or potentially reach $3,450 shortly thereafter.

Potential for Further Losses in Ethereum

If Ethereum fails to surpass the $3,250 resistance, it may begin a new decline. Initial support on the downside rests near the $3,200 mark, with primary support located around the $3,180 region.

A decisive move below the $3,180 support could challenge the price further, potentially leading it downward toward the $3,120 support level. Additional losses could even lead to a price target around $3,050, with significant support appearing at the $3,000 level.

Technical Indicators

Hourly MACD: The MACD for ETH/USD indicates diminishing momentum within the bearish zone.
Hourly RSI: The RSI for ETH/USD currently positions below the 50 level.
Major Support Level: $3,180
Major Resistance Level: $3,280