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Ethereum Price Slumps: Will the Bulls Reassert Dominance?

Ethereum (ETH) experienced a significant price drop, falling below the crucial $3,680 support level. This decline, exceeding 7%, paints a bearish picture, particularly as the price remains below the $3,550 mark and the 100-hourly Simple Moving Average. Technical analysis reveals a concerning bearish trend line forming with resistance at approximately $3,650 (data from Kraken). The initial descent below $3,680 accelerated as bearish momentum intensified below $3,650. The price plummeted below $3,600 and $3,550, briefly touching a low of $3,324 before a period of consolidation. This key support level near $3,650 continues to act as a significant hurdle. Failure to reclaim this level may signal further downward movement. Looking at the hourly chart, we observe ETH trading below the 100-hourly SMA, and resistance is clearly visible around the $3,510 level – near the 23.6% Fibonacci retracement level of the recent downturn from the $4,105 swing high to the $3,324 low. Further resistance lies at $3,650, and more significantly at $3,715 (the 50% Fibonacci retracement level). A decisive break above $3,715 could propel the price towards $3,800. Sustained momentum beyond this level might trigger further gains, potentially targeting the $3,880 or even $4,000 mark. Conversely, failure to overcome the $3,650 resistance could exacerbate losses.

Potential Downside Risks:

If the $3,650 resistance holds, the price may test support near $3,350 initially, and then the $3,320 level. Breaking below $3,320 could trigger a further decline towards $3,250 and potentially $3,150. The next significant support zone rests at $3,050.

Technical Indicators:

  • Hourly MACD: Shows increasing bearish momentum.
  • Hourly RSI: Currently below the 50 level, indicating bearish sentiment.

Key Levels:

  • Major Support: $3,320
  • Major Resistance: $3,650

The coming days will be crucial in determining whether the bulls can regain control or if the bearish trend will continue to dominate. Close monitoring of the $3,650 resistance is essential for gauging the immediate future direction of Ethereum’s price.

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