Ethereum (ETH) struggled to maintain its position above $3,500 and experienced a further decline towards $3,150, similar to Bitcoin. Currently, the price is displaying several bearish indications below $3,400.
Ethereum’s price has broken its support level. Over the past few days, Ethereum has been experiencing a steady decline. Recently, ETH attempted to make a fresh upward move above the $3,450 mark, but the bears remained active. They defended the $3,750 resistance level, resulting in a fresh decline similar to Bitcoin.
The price dropped below the $3,500 and $3,400 levels. It even dipped below the 50% Fibonacci retracement level of the upward movement from the $2,360 swing low to the $4,094 high.
Currently, Ethereum is trading well below the $3,500 level and the 50-day simple moving average (blue line). More importantly, there has been a break below a connecting bullish trend line with support at $3,320 on the daily chart.
These developments are concerning for the bulls in the short term. If the bears continue to exert pressure, there could be further losses below the $3,200 level. The immediate support on the downside is around the $3,150 level.
The first major support level is situated near the $3,000 mark. It is close to the 61.8% Fibonacci retracement level of the upward movement from the $2,360 swing low to the $4,094 high. If the price closes below the $3,000 level on a daily basis, it might trigger more bearish movements in ETH.
In such a scenario, the price could drop and test the $2,770 support level. If the bulls fail to defend the $2,770 support, Ethereum might even decline further and retest the $2,350 pivot zone.
On the other hand, there is a possibility of a recovery in ETH. Ethereum might attempt a recovery wave from either $3,150 or $3,000. On the upside, the price could encounter resistance near the $3,300 level and the same trend line.
The first major resistance level is located near the $3,500 mark. The next resistance level is around $3,550 and the 50-day simple moving average (blue line). A clear breakthrough above the $3,550 level could pave the way for a strong increase towards the $3,750 level. If ETH bulls manage to push the price above the $3,750 resistance, they could aim for $4,050.
Overall, the price of Ethereum is displaying bearish indications below $3,500 and $3,400. If Ethereum falls below the $3,150 and $3,000 levels, it could potentially drop towards the $2,770 support level in the coming days.