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Ethereum It faced significant selling pressure in recent trading sessions as broader market trends turned further bearish. After trying to break above key resistance levels, ETH has encountered obstacles that indicate the prevailing trend is shifting towards a more negative outlook. When the price starts testing the support at $3,051, a potential breakout could signal a deeper pullback, which could push ETH towards lower support levels.
Key factors contributing to this bearish sentiment include weak buying interest, market-wide corrections, and technical indicators indicating further downside risks. Ethereum’s failure to maintain upward momentum, especially after hitting resistance, suggests that the bulls may be losing control, leaving the area… Bears In the driver’s seat.
The $3,051 level is crucial for the altcoin’s short-term outlook. If the price fails to hold above this support, it could accelerate the downward movement, possibly targeting the next support area. However, if ETH price stabilizes here and shows signs of a bullish reversal, it may regain upward 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 for the cryptocurrency’s short-term outlook. Price action has struggled to break through the key resistance The recent downward moves suggest that the bulls may have lost control.
As of the time of writing, ETH price is still trading below the 4-hour simple moving average (SMA), indicating that bearish pressure is still prevailing in the market. The 4-hour simple moving average acts 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 break above the SMA highlights the ongoing struggle to recover Ethereum rising batch. Until ETH rises above the SMA and closes above the SMA, downside risks remain, and the bears are likely to maintain their control.
Moreover, the Relative Strength Index (RSI) for ETH remained steady within the bearish zone, reinforcing the negative outlook for Ethereum. Typically, a Relative Strength Index (RSI) reading below 50% indicates a lack of upward strength, which means… sale Pressure outweighs buying interest in the market. In the case of Ethereum, the persistent situation in the bearish zone indicates that bulls are struggling to gain strength and push the price higher.
Can Ethereum defend against 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 area represents a possible Ethereum’s bottom line, and its ability to hold above this level will be pivotal in determining the asset’s next move.
A successful defense of $3,051 could stabilize the price and create chaos recovery Towards the $3,360 resistance level, where this may encourage buyers to step in and stop further declines. However, if Ethereum fails to hold this support and breaks below it, the bearish momentum may intensify, pushing the price towards lower levels.
Featured image on Unsplash, chart from Tradingview.com
