Ethereum (ETH) Sends Warning Signs: Can The Uptrend Survive?

Ethereum (ETH) struggled to surpass $3,500 and declined again below $3,350 like Bitcoin. The price is now showing bearish signs below $3,320.

Ethereum Price Revisits Support

In the past few days, there was a recovery attempt in Ethereum from the $3,000 zone. ETH was able to clear the $3,220 and $3,350 resistance levels. However, upsides were limited compared to Bitcoin.

The bears were active near the $3,500 resistance zone. A rejection pattern was formed at $3,500 and the price stayed below the 50-day simple moving average (blue). The price is again below the 50% Fib retracement level of the upward move from the $2,360 swing low to the $4,094 high.

Ethereum is now trading well below the $3,350 level and the 50-day simple moving average (blue). More importantly, there is now a new bearish trend line forming with resistance at $3,420 on the daily chart.

These are worrying signs for the bulls in the short term. If the bears remain in action, there could be a fresh bearish reaction below the $3,200 level. Immediate support on the downside is near the $3,120 level.

The first major support sits near the $3,020 level. It is close to the 61.8% Fib retracement level of the upward move from the $2,360 swing low to the $4,094 high. A daily close below the $3,020 level might spark heavy losses in ETH.

In the stated case, the price could drop and test the $2,780 support. If the bulls fail to defend the $2,780 support, Ethereum might even decline and retest the $2,360 support region.

Another Rally Attempt In ETH?

Conversely, Ethereum might attempt a fresh increase above the $3,300 zone. On the upside, the price could face resistance near the $3,350 level. The first major resistance sits near the $3,420 level and the same trend line.

The next resistance is near the $3,500 level and the 50-day simple moving average (blue). A clear move above the $3,500 level could open the doors for a steady increase toward the $3,740 level. If ETH settles above the $3,740 resistance, there could be a drift toward the $4,000 handle.

Overall, Ethereum price is showing bearish signs below $3,420 and $3,500. If ETH slides below the $3,120 and $3,020 levels, it could even dive toward the $2,780 support in the coming days.

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