Ethereum (ETH) Price: Trading Below $4,400 as Recovery Attempts Falter

TLDR

• Ethereum is trading below $4,400 and the 100-hourly Simple Moving Average
• ETH recently touched a low of $4,233 after failing to sustain recovery above $4,450
• A declining channel has formed with resistance at $4,310 on hourly chart
• Major support sits at $4,220 with potential for further decline if breached
• ETH needs to clear $4,360 resistance to target the $4,500 zone

Ethereum, the second-largest cryptocurrency by market capitalization, is showing signs of weakness despite attempts to recover from recent lows. The digital asset has been unable to break above key resistance levels, leaving it vulnerable to further downside pressure in the near term.

ETH started a recovery wave after establishing support above the $4,200 zone, similar to Bitcoin’s recent price action. The cryptocurrency managed to climb above $4,350 and briefly topped $4,400 before selling pressure returned to the market.

The price formed a recent low at $4,233 and has been consolidating losses since then. While there was a minor increase above the 23.6% Fibonacci retracement level of the recent decline from the $4,491 swing high to the $4,233 low, buyers face challenges near the $4,320 level.

Technical analysis reveals a short-term declining channel forming with resistance at $4,310 on the hourly chart of ETH/USD. The price is currently trading below both this level and the 100-hourly Simple Moving Average, indicating bearish control of the market.

On the upside, immediate resistance appears near the $4,300 mark. Beyond this, the $4,320 level presents the next hurdle for bulls to overcome.

Key Resistance Levels

The first major resistance is positioned at $4,360, which coincides with the 50% Fibonacci retracement level of the recent decline from $4,491 to $4,233. A decisive move above this zone could potentially send ETH toward the $4,420 resistance.

Should buyers manage to push the price above $4,420, Ethereum might gain enough momentum to target the $4,500 resistance zone or even reach $4,550 in the coming sessions.

However, the technical indicators suggest caution. The MACD for ETH/USD is gaining momentum in the bearish zone, while the RSI remains below the 50 level, both signaling potential continued weakness.

Support Zones to Watch

If Ethereum fails to clear the $4,360 resistance, a fresh decline could materialize. Initial support lies near the $4,260 level, with the first major support situated at $4,220.

A break below the $4,220 support could accelerate the downward movement toward $4,200. Further selling pressure might push ETH toward $4,160, with the next key support level at $4,120.

The current price action suggests that Ethereum is at a critical juncture. The ability to hold above the $4,220 support zone will be crucial for preventing a deeper correction.

Traders should monitor the $4,360 level closely, as a break above this resistance could signal a potential trend reversal. Conversely, failure to reclaim this level may result in continued downside pressure.

The hourly chart shows the formation of a declining channel, which typically indicates a continuation of the prevailing bearish trend unless broken to the upside.

ETH recently touched $4,233 and is now attempting to stabilize, but buying interest remains limited above the $4,300 mark. The cryptocurrency needs to attract substantial buying volume to overcome current resistance levels.

The most recent data shows Ethereum trading at $4,287, still below key moving averages and facing resistance at $4,310 within the declining channel pattern on the hourly timeframe.

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