Key Takeaways:
- Ethereum is slowly moving lower from the $4,000 resistance zone.
- ETH/USD is still above a crucial bullish trend line with current support at $3,200 on the weekly chart.
- The price could see a downside thrust before the bulls take a stand near $3,200.
NEW DELHI (CoinChapter.com) — Ethereum (ETH) is being dragged lower by Bitcoin. It seems like there could be a sharp decline toward $3,200 or even $3,050 before a potential fresh increase.
Ethereum Price Extends Decline
In the past 4-5 weeks, Ethereum saw a steady decline from the main barrier at $4,000. There was positive news for ETH, but the crypto market sentiment remained weak. More importantly, Bitcoin saw many rejections, resulting in a drop below $65,000.
Ether saw a downside break below the $3,600 and $3,500 support levels. The bears were able to push the price toward the 50% Fib retracement level of the upward move from the $2,824 swing low to the $3,975 high.
The last 4-5 weekly candles suggest an increase in the bears sentiment. Therefore, there are chances of more downsides in Ethereum. The first major support is visible near the $3,265 level. It is close to the 61.8% Fib retracement level of the upward move from the $2,824 swing low to the $3,975 high.
The main support seems to be forming near the $3,200 level. There is also a crucial bullish trend line in place with current support at $3,200 on the weekly chart.
ETH price might see a downside thrust toward or just below the trend line before the bulls take a stand. If the bulls fail to protect a weekly close below the trend line, there could be a sustained downward move. In the stated case, the price might decline toward the $2,825 low.
The next major support is visible near the 50-week simple moving average (blue) at $2,550. It is also close to the 1.236 Fib extension level of the upward move from the $2,824 swing low to the $3,975 high. Any more losses might send the price toward the $2,120 support region.
Fresh Increase In ETH?
Conversely, Ethereum might remain strong above the trend line support and attempt another increase. Immediate resistance is near the $3,550 level. The first major resistance is $3,650. If the price clears the $3,650 resistance, it could open the doors for a move toward the $3,880 resistance.
The next key resistance might be $4.000. A close above the $4,000 level could initiate a move toward the $4,200 resistance. Any more gains might send the price toward the $4,500 level in the coming weeks.
Overall, Ethereum price is showing a few bearish signs below $3,550. If the bulls fail to protect a weekly close below $3,200, there could be more losses toward $2,825. Conversely, the price might start another increase toward $3,880 in the coming weeks.
