Ethereum has encountered significant resistance at $2,980
This suggests that Ethereum has the potential to fall further as the market shows bearish momentum. A break below the key support level could signal a further decline.
Price Trend and Market Resistance
ETH is currently trading below $2,980 and the 100 hourly simple moving average, reflecting a bearish trend. On the hourly chart, a key resistance line is found near $2,980, and the price of Ethereum has not been able to break through the $2,980 resistance on a sustained basis, with the recent highest peak hitting $2,951 before facing a correction.
Potential Downward Shift
Further resistance is expected near $2,990 and $3,050. If Ethereum fails to break through these hurdles, it could face a fall to $2,865 and could fall further to $2,840. The key support level is now located around $2,780, below which the price could push the price towards the lower range of $2,650.
Insights from Technical Analysis
Technical indicators show a strengthening bearish momentum, with the hourly MACD for the ETH/USD pair deepening in the bearish zone. Moreover, the RSI is below 50, implying an increase in selling pressure.
Key Takeaways for Ethereum Investors
If Ethereum fails to hold support at $2,865, a drop to lower levels is likely to be expected. Close monitoring of the $2,990 resistance level could provide clues to the next major price action. Investors should consider setting up stop-loss orders to manage the risks associated with a sudden drop in price.
As the market navigates through this volatile period, key resistance and support levels will play a key role in determining Ethereum's short-term price trajectory.
