Ethereum has faced significant selling pressure over the past few trading sessions as broader market trends become more bearish. After attempting to break through key resistance levels, ETH encountered hurdles that suggest the prevailing trend is moving toward a more negative outlook. As price begins to test the $3,051 support, a potential breakdown could signal a larger pullback, which could push ETH towards lower support levels.
Key factors contributing to this bearish sentiment include weakening buying interest, market-wide retracements, and technical indicators signaling further downside risks. Ethereum’s inability to maintain upward momentum, especially after hitting resistance, suggests that the bulls may be losing control, leaving the bear on the driver’s seat.
The $3,051 level is critical for the altcoin’s near-term outlook. If the price fails to hold above this support, it could accelerate the downward move, possibly targeting the next support area. However, if ETH stabilizes here and shows signs of a bullish reversal, it could regain its bullish momentum and resume its recovery.
Technical Signals Point to a Bearish Shift: What’s Next for ETH?
Ethereum’s technical indicators paint a worrying picture of the cryptocurrency’s near-term prospects. Price action struggled to break through the key resistance levels and recent moves lower suggest the bulls may have lost control.
At the time of writing, ETH price is still trading below the 4-hour simple moving average (SMA), suggesting that bearish pressure still prevails in the market. The 4-hour SMA serves as a short-term trend indicator, and when price is below it, it generally indicates that selling pressure is dominating the market.
This failure to surpass the SMA highlights the continued struggle for Ethereum’s recovery. bullish momentum. Until ETH breaks above and closes above the SMA, downside risks remain intact and the bears will likely remain in control.
Additionally, ETH’s Relative Strength Index (RSI) has consistently remained in the bearish zone, reinforcing the negative outlook for Ethereum. Typically, an RSI below 50% indicates a lack of upside strength, implying that sale pressure outweighs buying interest in the market. In the case of Ethereum, the sustained positioning in the bearish zone indicates that the bulls are struggling to gain traction and push the price higher.
Can Ethereum defend itself against the bears?
Currently, Ethereum price is approaching a crucial support level at $3,051, which has become a key point to watch as bearish pressure mounts. This support zone represents a potential bottom for Ethereum, and its ability to sustain above this level will be crucial in determining the asset’s next move.
A successful defense of $3,051 could stabilize the price and trigger a bounce towards the $3,360 resistance as this could encourage buyers to step in and halt further declines. However, if Ethereum fails to hold this support and breaks below, the bearish momentum could intensify, pushing the price towards lower levels.
Featured image Unsplash, chart from Tradingview.com
