Ethereum Drops Below $3,320: What’s Next for ETH?

Ethereum Struggles Below $3,680

Ethereum failed to gain momentum above the $3,680 zone, initiating a fresh decline. The price dropped below $3,550 and the 100-hourly Simple Moving Average (SMA), signaling a bearish outlook. Here are the key developments:

• Ethereum price started a decline below the $3,680 level.
• The price is trading below the $3,550 mark and the 100-hourly SMA.
• A key bearish trend line is forming with resistance at $3,650 on the hourly chart.
• If Ethereum fails to stay above the $3,650 zone, further downside movement is likely.

Ethereum Price Action: Key Levels to Watch

Ethereum’s price is currently consolidating losses after diving below the $3,550 mark. The price even spiked below $3,420 and formed a low at $3,324. As the price consolidates, there are several important resistance and support levels to watch:

Resistance Levels

• $3,510 – Ethereum faces immediate resistance near this level, which is also close to the 23.6% Fibonacci retracement of the downward move from the $4,105 high to the $3,324 low.
• $3,650 – A key bearish trend line on the hourly chart is forming resistance at this level. A break above this level could signal a potential upward move.
• $3,715 – The 50% Fibonacci retracement level from the downward move is a major resistance. If Ethereum breaks this level, it may rally towards higher targets.
• $3,800 – If the price breaks above $3,715, Ethereum could target the $3,800 resistance level. A further breakout could push Ethereum toward the $3,880 or even the $4,000 resistance zone.

Support Levels

• $3,350 – The first key support level on the downside is at $3,350.
• $3,320 – A critical support zone, a move below this could lead to further declines.
• $3,250 – If Ethereum breaks below $3,320, the next support level lies at $3,250.
• $3,150 – A deeper correction could take Ethereum toward the $3,150 support level.
• $3,050 – The next key support after $3,150 lies at $3,050.

What’s Next for Ethereum?

If Ethereum fails to break through the $3,650 resistance level, it could continue its downward movement. The key support levels at $3,350 and $3,320 will be crucial in determining whether Ethereum’s price can stabilize or if further declines are likely. Traders should closely monitor these levels as they will provide important signals for the next move in the market.

On the other hand, if Ethereum can reclaim the $3,650 resistance level and sustain above it, there could be potential for a rally toward higher resistance levels like $3,715 and $3,800. However, the ongoing bearish trend suggests that Ethereum might face further challenges in the short term.

Conclusion

Ethereum’s price is currently in a bearish phase, with the price struggling below the $3,680 zone. The market faces a critical test at the $3,350 and $3,320 support levels. A break below these levels could lead to further declines, while a move above the $3,650 resistance could signal a potential reversal. Ethereum traders should stay vigilant and watch for key price action at these critical levels in the coming sessions.