Ethereum Price Plunge: Bearish Pressure Hinders Potential Rally

The Ethereum price failed to break above the $3,520 area and started a new decline. The ETH price fell below the $3,250 support level and even tested the $3,150 area.

The Ethereum price fell below two key levels of $3,320 and $3,250 and is currently trading below $3,250 and the 100 hourly simple moving average. On the hourly chart of the ETH/USD pair (data source: Kraken), an important bearish trend line is forming with resistance near $3,325. Although the pair may make a pullback to correct losses, the upside may be limited above the $3,320 area.

The Ethereum price failed to rise sustainably and broke through the $3,450 and $3,420 resistance levels. Similar to Bitcoin, ETH also started to decline below the $3,320 support area and further broke below the $3,250 and $3,220 support levels. The price fell by 5% and even tested the $3,150 support level. After hitting a low of $3,156, the price is currently correcting to correct losses. The price rose above the $3,200 resistance level and is currently testing the 23.6% Fibonacci retracement level of the downtrend from the $3,426 swing high to $3,156 low.

Ethereum is currently trading below $3,300 and the 100 hourly simple moving average. In case of a rebound, the price is likely to face resistance near $3,250. The first major resistance is near $3,300 or the 50% Fibonacci retracement level of the downtrend from the $3,426 swing high to $3,156 low. Meanwhile, there is a key bearish trend line in place on the hourly chart with resistance near $3,325. The next major resistance is near $3,365. A close above $3,365 could propel Ethereum towards the $3,450 resistance level. The next key resistance is near $3,500. If the price can break through the $3,500 resistance level, it may rise further. Any additional gains may bring the price of Ethereum closer to the $3,550 resistance area.

From the technical indicators, the MACD of Ethereum/USD is accelerating downward in the bearish area, and the RSI has also fallen below 50, showing the short-term correction pressure of the market.Overall, Ethereum is currently in an important period of technical adjustment.