Ethereum (ETH) is currently experiencing a downward trend due to the influence of Bitcoin. It is likely that the price will decline to around $3,200 or even $3,050 before potentially rebounding.
Over the past 4-5 weeks, Ethereum has seen a steady decline from its major resistance level at $4,000. Despite some positive news for ETH, the overall sentiment in the crypto market has remained weak. Additionally, Bitcoin has faced multiple rejections, causing its price to drop below $65,000.
Ether has broken below the support levels at $3,600 and $3,500. The bears have managed to push the price down to the 50% Fibonacci retracement level, which is based on the upward movement from the swing low of $2,824 to the high of $3,975.
The recent weekly candles indicate a growing bearish sentiment, suggesting that Ethereum may experience further downside. The first major support level is around $3,265, which is close to the 61.8% Fibonacci retracement level. However, the main support level appears to be forming around $3,200, where there is also a crucial bullish trend line on the weekly chart.
It is possible that the price of ETH may see a temporary decline towards or just below the trend line before the bulls regain control. If the bulls fail to maintain a weekly close above the trend line, there may be a sustained downward movement, with the price potentially dropping to the low of $2,825.
The next significant support level is near the 50-week simple moving average (blue) at $2,550, which is also close to the 1.236 Fibonacci extension level. Further losses could lead the price towards the support region at $2,120.
On the other hand, if Ethereum manages to hold above the trend line support, it may attempt another upward movement. The immediate resistance level is around $3,550, followed by the major resistance at $3,650. Breaking above this level could pave the way for a move towards the $3,880 resistance.
The next key resistance level is at $4,000, and a close above this level could potentially trigger a move towards the $4,200 resistance. Further gains may push the price towards the $4,500 level in the coming weeks.
In conclusion, the price of Ethereum is currently showing some bearish signs below $3,550. If the bulls are unable to maintain a weekly close above $3,200, there may be further losses towards $2,825. However, if the price manages to rebound, it could potentially reach $3,880 in the coming weeks.