Ethereum (ETH) At A Crossroads: Clear This Hurdle or Face Downside Risk

Ethereum (ETH) struggled to surpass $3,400 and declined again below $3,250 like Bitcoin. The price is still showing bearish signs below $3,400.

Ethereum Price Faces Uphill Task

In the past few days, there was another recovery attempt in Ethereum from the $3,120 zone. ETH was able to clear the $3,220 and $3,250 resistance levels. However, upsides were again capped and the price remained below the $3,500 resistance zone, unlike Bitcoin.

The bears were active near the $3,400 resistance zone. They were again active near the bearish trend line with resistance at $3,400 on the daily chart (as discussed in the previous analysis). A rejection pattern was formed at $3,400 and the price stayed below the 50-day simple moving average (blue).

Ethereum is now below the $3,250 support level and shows bearish signs. If the bears remain in action, there could be more losses in the coming sessions. 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 wave from the $2,360 swing low to the $4,095 high.

A daily close below the $3,020 level might send ETH further lower. In the stated case, the price could drop and test the $2,770 support. It coincides with the 76.4% Fib retracement level of the upward wave from the $2,360 swing low to the $4,095 high.

If the bulls fail to defend the $2,770 support, Ethereum might even decline and retest the $2,360 support zone in the coming days.

Can ETH Attempt Another Increase?

Conversely, Ethereum might attempt a fresh increase if it stays above the $3,000 zone. On the upside, the price could face resistance near the $3,320 level. The first major resistance sits near the $3,400 level and the same trend line.

The next resistance is near the $3,420 level and the 50-day simple moving average (blue). A clear move above the $3,420 level could open the doors for a steady increase toward the $3,525 level. If ETH settles above the $3,525 resistance, there could be a drift toward the $3,740 resistance.

Overall, Ethereum price is showing bearish signs below $3,320 and $3,400. If ETH slides below the $3,120 and $3,020 levels, it could continue to move down toward the $2,780 support in the coming days.

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