The Ethereum price has shown signs of weakness as it failed to recover above the $3,650 resistance level. In fact, ETH declined below the $3,550 support zone and is now displaying bearish tendencies below $3,600. The price is currently trading under $3,550 and below the 100-hourly Simple Moving Average.
There is a significant bearish trend line forming with resistance near $3,650 on the hourly chart of ETH/USD, according to data from Kraken. If the pair remains below the $3,650 resistance zone, it is likely to see further losses. The first major resistance is anticipated at the $3,570 level, followed by the $3,720 level.
Despite the current downtrend, there is still a chance for Ethereum to recover. A breakthrough above the $3,650 resistance could potentially send the price higher, with the next key resistance at $3,720. This could lead to a further rally towards the $3,820 level and even a test of the $3,920 resistance. If the momentum continues, Ether might even reach the $4,000 resistance zone.
However, if Ethereum fails to clear the $3,550 resistance, it may continue to move downwards. Initial support is expected near $3,475, followed by a major support zone at $3,430. A break below the $3,430 support level could push the price towards $3,320, and further losses might lead to a drop to the $3,250 level in the short term.
The Hourly MACD for ETH/USD is currently indicating a loss in momentum within the bearish zone. Additionally, the Hourly RSI has dropped below the 50 zone. These technical indicators suggest a cautious approach for Ethereum traders as the price continues to face resistance at key levels.
While Ethereum is facing challenges in its current price movement, there are still opportunities for recovery if key resistance levels are surpassed. Traders should closely monitor the price action and technical indicators to make informed decisions regarding their investment strategies.