Ethereum price retreats, following Bitcoin's downward trend

Ethereum price failed to break through the $3,600 resistance level and instead pulled back. Affected by the weakness in the Bitcoin market, Ethereum also encountered selling pressure and fell to around $3,365.

The pullback of Ethereum from the $3,500 resistance zone is not accidental, but a microcosm of the overall cryptocurrency market sentiment. The price fell below the important psychological level of $3,550 and also lost the 100-hour simple moving average, which undoubtedly put a lot of pressure on the market.

From a technical point of view, a key descending trend line has formed on the Ethereum chart with resistance near $3,465. The existence of this trend line means that Ethereum may still face downward pressure in the short term. If the price continues to decline and falls below the two support levels of $3,395 and $3,340, Ethereum may usher in a deeper adjustment.

Recent market dynamics show that Ethereum has encountered strong selling pressure when trying to continue to rise from the $3,540 level. Although Ethereum tried to follow the trend of Bitcoin, it ultimately failed to withstand the market's selling pressure and the price fell from its highs. Currently, Ethereum is in a technically sensitive area, and its short-term upside potential is questioned by the market.

If Ethereum cannot effectively break through the $3,485 resistance zone, its downside risk will increase further. The immediate support is around $3,405, but the more critical support is $3,360. Once this level is broken, Ethereum may fall further to $3,200 or even lower.

In terms of technical indicators, MACD (moving average convergence divergence) is deepening into the bear market area, and RSI (relative strength index) has also fallen below the neutral line of 50, all of which suggest a weakening of Ethereum's market momentum and possible further declines.