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Ethereum (ETH) Sends Warning Signs: Can The Uptrend Survive?
The Ethereum (ETH) price has been struggling to break through the $3,500 resistance level and has instead declined below $3,320. This recent price action is giving off bearish signs that could be a warning sign for the uptrend.
In recent days, there was a brief recovery attempt by ETH from the $3,000 zone, which managed to clear the $3,220 and $3,350 resistance levels. However, this upward momentum was limited compared to Bitcoin’s (BTC) price action. The bears were active near the $3,500 resistance zone, resulting in a rejection pattern being formed at that level. Additionally, the ETH price failed to stay above the 50-day simple moving average (blue), which could be another indication of weakness.
Currently, Ethereum is trading below both the $3,350 and $3,420 levels, indicating bearish signs. A fresh bearish reaction is possible if the bears continue their action below the $3,200 level. The immediate support on the downside sits near the $3,120 level, with a major support at $3,020. If ETH falls beneath the $3,020 level, it could trigger heavy losses and potentially lead to a drop towards the $2,780 support. Should this happen, Ethereum might even retest the $2,360 support region.
On the other hand, there is still potential for another rally attempt by ETH above the $3,300 zone. The price may encounter resistance near $3,350 and then again at the $3,420 level. If ETH manages to break through these levels, a surge towards $3,740 could be possible. Should Ethereum settle above this level, it may even start drifting towards $4,000.
However, it’s essential to acknowledge that the Ethereum price is showing bearish signs below $3,420 and $3,500. If ETH drops below $3,120 and $3,020 levels in the coming days, it could potentially lead to a decline towards the $2,780 support.
I’m Aayush Jindal
Source: coinchapter.com
