Ethereum Price Shows Bearish Signals, Bulls Lose Short-Term Strength

Ethereum's price struggled to maintain its position above $3,000 and has experienced a decline. ETH is currently showing signs of bearish momentum and may drop further below $2,880.

Key Takeaways

Ethereum price has declined below key support levels, indicating bearish trends.
Currently trading under $2,950 and the 100-hourly Simple Moving Average.
A crucial break below the $2,880 support could lead to further downward movement.

Ethereum Price Flashes Bearish Bias

Ethereum Price Declines Below Key Levels

Ethereum has failed to hold above the $3,000 level, similar to Bitcoin's recent performance. The ETH price fell below $2,980, positioning it within a bearish territory. The bears successfully drove the price below the 50% Fibonacci retracement level from the upward move between the swing low of $2,775 and the high of $3,075. Additionally, there was a break below an upward channel that had support around $2,980 on the hourly ETH/USD chart.

Currently, the price is trading beneath the $2,980 mark and the 100-hourly Simple Moving Average. If the bulls can defend against further losses below $2,880, there may be a chance for a recovery.

Ethereum Price Chart

Source: ETHUSD on TradingView.com

Immediate resistance can be found near the $2,980 level. The first key resistance area is around $3,000, with subsequent major resistance levels at approximately $3,050. If Ethereum can break above the $3,050 resistance, it may push towards the $3,120 resistance level. Should it exceed the $3,120 region, Ether might see additional gains, potentially revisiting the $3,200 resistance zone or even $3,220 soon thereafter.

Potential for Further Losses in ETH

If Ethereum is unable to break through the $3,000 resistance level, it risks initiating another decline. Initial support is near the $2,880 level, coinciding with the 61.8% Fibonacci retracement level from the upward move stemming from the $2,775 swing low to the $3,075 high.

The major support is positioned around the $2,845 zone, and a significant breach below this level may lead to further downward pressure toward the $2,800 level. If losses persist, the price could drop towards the $2,775 region, with critical support identified at $2,720.

Technical Indicators

Hourly MACD: The MACD for ETH/USD is gathering momentum in the bearish zone.
Hourly RSI: The RSI for ETH/USD is currently below the 50 mark.
Major Support Level: $2,880
Major Resistance Level: $3,000