Ethereum has faced significant selling pressure in recent trading sessions as broader market trends become more bearish. After attempting to break through key resistance levels, ETH encountered obstacles that suggest the prevailing trend is shifting towards a more negative outlook. As the price begins to test the $3,051 support, a possible breakout could signal a deeper pullback, which could push ETH towards lower support levels.
Key factors contributing to this bearish sentiment include weakening buying interest, market-wide pullbacks, and technical indicators signaling new downside risks. Ethereum’s failure to maintain bullish momentum, especially after encountering resistance, suggests that the bulls may be losing control, leaving the bears in the driver’s seat.
The $3,051 level is critical for the altcoin’s near-term prospects. If the price fails to hold above this support, it could accelerate the downward movement, possibly targeting the next support zone. However, if ETH stabilizes here and shows signs of a bullish reversal, it may regain bullish momentum and resume its rally.
Technical Signals Point to a Bearish Turnaround: What’s Next for ETH?
Ethereum technical indicators are painting a worrying picture of the cryptocurrency’s near-term prospects. The price action has struggled to break the key. endurance The levels and recent moves lower suggest that 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 is still prevailing in the market. The 4-hour SMA serves as a short-term trend indicator and when the price is below it, it usually indicates that selling pressure is dominating the market.
This failure to surpass the SMA highlights the ongoing fight for Ethereum to recover. bullish impulse. Until ETH breaks out and closes above the SMA, downside risks remain intact and bears are likely to remain in control.
Furthermore, ETH’s Relative Strength Index (RSI) has remained persistently within the bearish zone, reinforcing the negative outlook for Ethereum. Typically, an RSI reading below 50% indicates a lack of bullish strength, implying that sale The pressure exceeds the 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 fend off 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 increases. This support zone represents a potential floor for Ethereum, and its ability to stay above this level will be critical in determining the asset’s next move.
A successful defense of $3,051 could stabilize the price and cause a rebound towards the resistance at $3,360 as it may encourage buyers to intervene and stop further declines. However, if Ethereum fails to hold this support and falls below it, the bearish momentum could intensify, pushing the price towards lower levels.
Featured image Unsplash, Tradingview.com chart
