Ethereum Price Retreats: Market Sentiment Slowly Shifts Bearish

21 June 2024

Ethereum price struggled to climb above the $3,650 resistance and trimmed gains. ETH is now signaling a downside break and might decline below $3,450.

Ethereum is trimming gains from the $3,620 resistance zone.
The price is trading below $3,550 and the 100-hourly Simple Moving Average.
There was a break below a short-term rising channel forming with support at $3,540 on the hourly chart of ETH/USD (data feed via Kraken).
The pair could gain bearish momentum if it dips below the $3,485 and $3,450 support levels.

Ethereum Price Trims Gains

Ethereum price started a decent increase above the $3,500 zone. ETH outperformed Bitcoin and broke the $3,550 resistance. However, the price struggled to surpass the $3,620 level and failed to test $3,650.

A high was formed at $3,620 and the price is now trimming gains. There was a minor decline below the $3,550 level. The price dipped below the 23.6% Fib retracement level of the upward move from the $3,351 swing low to the $3,620 high.

There was a break below a short-term rising channel forming with support at $3,540 on the hourly chart of ETH/USD. Ethereum is still trading below $3,550 and the 100-hourly Simple Moving Average.

The bulls are now active near the $3,485 support zone and the 50% Fib retracement level of the upward move from the $3,351 swing low to the $3,620 high. On the upside, the price might face resistance near the $3,520 level. The first major resistance is near the $3,560 level.

The main resistance sits at $3,620 or $3,650. An upside break above the $3,650 resistance might send the price higher. The next key resistance sits at $3,720, above which the price might gain traction and rise toward the $3,750 level. Any more gains could send Ether toward the $3,880 resistance zone in the coming days.

More Downsides In ETH?

If Ethereum fails to clear the $3,560 resistance, it could start another decline. Initial support on the downside is near $3,485. The first major support is $3,450.

A clear move below the $3,450 support might push the price toward $3,420. Any more losses might send the price toward the $3,350 level in the near term.

Technical Indicators

Hourly MACDThe MACD for ETH/USD is gaining momentum in the bearish zone.

Hourly RSIThe RSI for ETH/USD is now below the 50 zone.

Major Support Level – $3,450

Major Resistance Level – $3,560

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