Ethereum (ETH) is currently experiencing a downward trend due to the influence of Bitcoin. It appears that there may be a significant decline towards $3,200 or even $3,050 before a potential upward movement.
Over the past 4-5 weeks, Ethereum has steadily declined from its major resistance point at $4,000. Despite positive news surrounding ETH, the overall sentiment in the crypto market remains weak. Additionally, Bitcoin has faced multiple rejections and has dropped below $65,000.
Ether has broken below the support levels at $3,600 and $3,500, allowing the bears to push the price towards the 50% Fibonacci retracement level. Looking at the weekly chart, the recent candles indicate an increase in bearish sentiment, suggesting the possibility of further downside for Ethereum.
The first significant support level is around $3,265, which aligns with the 61.8% Fibonacci retracement level. Another crucial support level is forming near $3,200, where a bullish trend line is currently in place on the weekly chart.
It is likely that the price of ETH may experience a downward thrust towards or just below the trend line before the bulls regain control. If the bulls are unable to prevent a weekly close below the trend line, there could be a sustained downward movement, potentially leading to a decline towards the $2,825 low.
The next major support level can be found near the 50-week simple moving average at $2,550, which also aligns with the 1.236 Fibonacci extension level. Further losses may push the price towards the $2,120 support region.
However, if Ethereum manages to remain strong above the trend line support, it may attempt another upward movement. The immediate resistance level is around $3,550, followed by the first major resistance at $3,650. Breaking above this resistance could open the door for a move towards the $3,880 resistance.
The next significant resistance level would be $4,000, and a close above this level may initiate a push towards the $4,200 resistance. Further gains could potentially lead the price towards the $4,500 level in the coming weeks.
In summary, Ethereum’s price is currently displaying bearish signals below $3,550. If the bulls fail to prevent a weekly close below $3,200, there could be further losses towards $2,825. On the other hand, if the price manages to regain momentum, it may aim for $3,880 in the near future.