Price action suggests bearability below $3,650

TLDR

Ethereum experienced a sharp decline, dropping below $3,680 and currently trading below $3,550. A key bearish trend line has formed resistance at $3,650 on the hourly chart. RSI, continued bearish momentum recovery will require breaking through several resistance levels, 3,715 The dollar is a critical point.

Ethereum's price journey has taken a downward turn, with the major altcoin dropping below several key support levels in recent hours. The cryptocurrency has fallen over 7% and is currently trading below $3,550, indicating continued bearish pressure in the short term.

The decline began as Ethereum struggled to maintain momentum above the $3,680 level, leading to technical support breaks. The price action reflects the broader market movement, with Bitcoin experiencing downward pressure at the same time.

Trading data from Kraken shows that Ethereum's price action has broken below the 100-hour simple moving average, a technical indicator often used to determine market trends. This break suggests that bears have taken immediate control of price action.

As the price of Ethereum continued to slide, eventually reaching a local low of $3,324, the depth of the current decline became clear. This price point represents a significant departure from recent trading ranges and has established a new support level that traders will be watching closely.

Technical analysis of the hourly chart shows the formation of a bearish trend line with resistance at $3,650. This pattern indicates that any attempt at recovery will face strong selling pressure at these highs.

According to current market data, Ethereum is consolidating around the $3,510 level, which corresponds to the 23.6% Fibonacci retracement level. This technical indicator takes into account the rally from $4,105 to a low of $3,324.

For traders looking at recovery conditions, the first major hurdle is seen at the $3,650 mark. This level is reinforced by the previously mentioned bearish trend line, which makes it a critical point for any potential upward movement.

A more significant resistance level has formed around $3,715, which marks the 50% Fibonacci retracement of the recent downtrend. This price point could be a key battleground between bulls and bears in the coming trading sessions.

If buyers can push the price above these immediate resistance levels, the next major target will be the $3,800 mark. A successful break above this point could pave the way to the psychologically important $4,000 level.

However, the current technical setup suggests that side effects are still prevalent. An immediate support level to watch is near $3,350, with a more important support zone established around $3,320.

If the selling pressure continues and Ethereum fails to hold these support levels, the next potential landing zones are seen at $3,250 and $3,150. Technical traders are especially looking at the $3,050 level as a critical support point, if the current bearish momentum continues.

The hourly MACD (Moving Average Convergence Divergence) indicator is showing increasing momentum in the bullish zone, adding weight to the short-term negative outlook. This technical indicator is often used to measure trend strength and direction.

Similarly, the RSI (Relative Strength Index) for ETH/USD has fallen below the 50 zone, indicating that bearish pressure currently dominates the market sentiment. RSI is a momentum indicator that helps traders identify overbought or oversold conditions.

Trading volume data indicates that selling activity has increased during this bearish period, with prices entering various support levels and several large transactions being recorded.

Price action has formed a series of lower highs and lower lows on the hourly chart, a pattern that typically indicates a continuing downtrend in technical analysis.

Market data shows that order books are currently weighted to the sell side, with major resistance at the $3,650 level.

Recent price action has resulted in the liquidation of several long positions, contributing to downward pressure as forced selling leads to further price declines.

Hourly chart patterns suggest a flag formation, indicating that the current rally may be temporary before another potential move down.