The Ethereum (ETH) market has experienced a significant round of price volatility in recent days. Starting from the key resistance level of $3,500, Ethereum price saw a sharp decline, losing more than 8%, and briefly fell below the important support levels of $3,350 and $3,200. The volatility sparked widespread concern among market participants as they speculated on where the altcoin giant will go next.

On the hourly chart of ETH/USD, the price of Ethereum broke out of a key descending channel, with the support moving down to $3,380. However, the market did not stop there, and the price even fell below the $3,200 level and formed a low near $3,183. This low suggests that the price of Ethereum may still be at risk of further decline in the short term.

Currently, Ethereum is trading below $3,400 and the 100 hourly simple moving average. For investors, if the market shows signs of recovery, Ethereum price might face resistance near $3,250, which is the 23.6% Fibonacci retracement level of the downward move from the $3,500 high to $3,183 low.

However, on the way up, Ethereum will face multiple resistance levels. First, the $3,300 level is a major resistance. If the price can break above this level, the next challenge will be the resistance level near $3,350 and the 50% Fibonacci retracement level of the downward move from high to low. A close above $3,350 could see Ethereum price rise further to the $3,380 resistance level and even higher.

However, there are downside risks in the market. If Ethereum fails to break above the $3,250 resistance, the price may continue to fall. An initial support on the downside is near $3,180, while the first major support is located in the $3,120 area. If the price falls below this support, it may fall further to $3,080 or even $3,020 support. The next key support is located at $2,950.

From the technical indicators, ETH/USD's MACD is gaining momentum in the bearish zone, indicating that the market may still be in a downtrend in the short term. At the same time, the RSI is now below the 50 area, which further verifies the market's weak trend.

In general, the price of Ethereum may still face large fluctuations in the future. You should pay close attention to changes in market dynamics and technical indicators in order to make wise decisions.

(Personal opinion, not a recommendation)

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