Ethereum (ETH) struggled to maintain its position above $3,500 and continued to decline towards $3,150, following a similar trend as Bitcoin. The current price is exhibiting several bearish signals below $3,400.
Ethereum’s price has been steadily decreasing in the past few days. Recently, ETH made an attempt to rise above the $3,450 level, but the bears remained active, preventing any significant gains. They defended the $3,750 resistance, resulting in a fresh decline similar to Bitcoin.
The price has now dropped below both the $3,500 level and the 50-day simple moving average (blue). Additionally, a connecting bullish trend line with support at $3,320 on the daily chart has been broken.
These indications are concerning for the bulls in the short term. If the bears continue to dominate, the price may experience further losses below the $3,200 level. The immediate support on the downside is around $3,150.
The first major support level is located near $3,000, which is close to the 61.8% Fibonacci retracement level of the upward wave from the $2,360 swing low to the $4,094 high. If the price closes below $3,000 on a daily basis, it could 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 this support, Ethereum may even decline and retest the $2,350 pivot zone.
On the other hand, there is a possibility of a recovery wave in ETH starting from either $3,150 or $3,000. On the upside, the price could face resistance near the $3,300 level and the same trend line.
The first major resistance level is situated around $3,500, followed by the $3,550 level and the 50-day simple moving average (blue). A clear breakthrough above the $3,550 level could pave the way for a strong increase towards the $3,750 level. If the ETH bulls manage to surpass the $3,750 resistance, their next target could be $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, there is a possibility of it diving towards the $2,770 support level in the upcoming days.