Ethereum attempted to rally but faced resistance near $3,050. The price is now struggling to hold above $2,900 and is trading below $2,950 and the 100-hour Simple Moving Average. A short-term contracting triangle is forming on the hourly chart, with resistance around $2,930. If the price breaks below the $2,880 support, it could continue to decline.
After a brief recovery above $2,920 and $2,950, Ethereum climbed past $3,000 before facing selling pressure. The price peaked at $3,053 and then fell sharply, dropping below $3,000, $2,980, and even $2,950. A low was established at $2,907, and the price is now consolidating below the 23.6% Fibonacci retracement level of the recent decline from $3,053 to $2,907.
Ethereum is currently trading above $2,950 and the 100-hour Simple Moving Average. If buyers can prevent further losses below $2,900, another recovery attempt may follow. Immediate resistance is near $2,940, with a key level at $2,955. The next major resistance is around $2,980, which aligns with the 50% Fibonacci retracement level of the recent drop. A clear break above $2,955 could push the price toward $3,000, and surpassing that level might lead to further gains toward $3,050 or even $3,120.
However, if Ethereum fails to overcome the $2,955 resistance, it could resume its decline. Initial support is near $2,900, followed by a major level at $2,880. A break below $2,880 might lead to a drop toward $2,840, with further losses potentially testing $2,800. The next key support lies at $2,720.
Technical Indicators
– Hourly MACD: Gaining momentum in bearish territory.
– Hourly RSI: Currently below the 50 level.
– Major Support Level: $2,900
– Major Resistance Level: $2,955
Frequently Asked Questions
FAQs Ethereums Price Momentum Potential Downturn
Beginner Questions
Q What does it mean when people say Ethereums price momentum is shifting
A It means the recent trend of price increases is slowing down or reversing suggesting buyers are losing enthusiasm and sellers may be taking control
Q Whats a potential downturn in simple terms
A Its a possibility that the price of Ethereum will start to fall for a period of time rather than rise or stay flat
Q How can I tell if Ethereums momentum is actually changing
A Common signs include the price struggling to reach new highs increased selling volume on down days and the price falling below recent support levels
Q Should I sell my Ethereum if I hear about a potential downturn
A Not necessarily It depends on your investment goals and risk tolerance Potential means its not certain Many investors use downturns as buying opportunities while others may sell to protect their capital
Q What causes Ethereums price to potentially go down
A Many factors can contribute including negative broader market trends negative news about regulation or technology profittaking by large holders or a general decline in risk appetite among investors
IntermediateAdvanced Questions
Q What are some key technical indicators that signal weakening momentum
A Analysts often watch for
The Relative Strength Index falling from overbought levels
The Moving Average Convergence Divergence showing a bearish crossover
The price breaking below key moving averages like the 50day or 200day average on significant volume
Q How does onchain data help confirm a shift in momentum
A Onchain metrics can show what large investors are doing A shift might be confirmed by
An increase in ETH moving to exchanges
A decline in the number of new active addresses on the network
A falling Network Value to Transactions ratio which can signal the networks utility isnt keeping up with its price