Ethereum (ETH) has once again experienced a price drop, falling from its recent peak of $3,550. After struggling to maintain its upward momentum, the cryptocurrency has seen a dip below crucial support levels, raising concerns about a potential further decline. Here's a breakdown of the current situation and what to expect for Ethereum in the coming days:

Key Price Movements and Support Levels:

Price Drop from $3,550: Ethereum recently failed to break the $3,550 resistance level, resulting in a decline.

Current Price: Ethereum is now trading below $3,450, and the 100-hour Simple Moving Average (SMA) further supports the bearish trend.

Break Below $3,450: A significant trend line, which had been acting as support at $3,450, was broken, signaling further weakness for ETH.

Potential for Further Decline: If Ethereum continues its downtrend and falls below $3,300, it could see a deeper decline, possibly pushing prices even lower.

Ethereum's Bearish Movement Explained:

Price Below $3,450: After encountering resistance at $3,550, Ethereum slipped below key support levels, including $3,450 and $3,420.

Fib Retracement Levels: The price is currently hovering below the 50% Fibonacci retracement level, which indicates the strength of the bearish momentum.

Support at $3,300: Ethereum is now targeting the next support level at $3,300, which aligns with the 76.4% Fib retracement from its recent bullish wave.

Resistance Levels to Watch:

Immediate Resistance at $3,380: If the price manages to rise, the first resistance is seen at $3,380.

Key Resistance Near $3,420: The next major resistance level lies around $3,420, which Ethereum must overcome to break the bearish trend.

$3,500 as the Critical Barrier: A clean break above $3,500 could signal a reversal in momentum, potentially pushing the price back above $3,550.

Bullish Scenario: Potential for Recovery

Break Above $3,500: A decisive move above this level could lead to significant upward momentum, with possible price targets of $3,650 or even $3,720 in the near term.

Bearish Outlook: Risks of Further Losses

Failure to Break $3,420: If Ethereum struggles to rise past $3,420, it could fall further, with the first downside support around $3,320.

Major Support at $3,300: A critical support level is located at $3,300. A decisive break below this could trigger a larger downtrend, pushing Ethereum towards the next support at $3,250.

Potential Drop to $3,220: If losses continue, the price could approach the $3,220 support zone. Beyond that, further declines could take Ethereum to $3,110.

Key Takeaways:

Ethereum is facing strong resistance at $3,420 and $3,500.

A break below $3,300 could lead to further declines towards $3,250 or lower.

A move above $3,500 might open the door to recovery, with potential price targets of $3,650 or $3,720.

Ethereum’s price action is in a precarious state, and whether it gains momentum or continues to lose ground will depend on its ability to reclaim key support levels or break through resistance. Keep an eye on these critical price points as the market evolves.

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