ETHUSD bulls have experienced a setback in their attempts to recover bullish momentum as the price failed to breach the crucial $2,160 resistance level. Despite initial signs of recovery, a significant selling pressure at this critical level has hindered a sustainable breakout, much to the disappointment of bullish traders hoping for an upward trend.
The failure to overcome this resistance indicates that bears still hold sway, keeping Ethereum’s price under continuous strain. As the momentum wanes and the market sentiment turns wary, traders are keeping a close watch on key support zones to anticipate the next move.
Bearish Pressure Intensifies: What’s in Store for Ethereum?
Facing mounting downward pressure, Ethereum’s latest recovery effort was thwarted at the $2,160 resistance level. This unsuccessful breakout has strengthened bearish sentiment, with key technical indicators signaling weakness. If the buyers do not intervene, a further dip in ETH’s value may be imminent.
One alarming sign is the waning volume during the recovery attempt. A robust breakout often necessitates significant buying interest, but the lack of momentum in Ethereum’s rally made it easy for sellers to regain the upper hand. This lack of determination among bulls implies that the upward move was not sustainable, enabling bears to drive prices lower.
Moreover, the Relative Strength Index (RSI) has plummeted, falling below crucial thresholds that denote weakening bullish strength. The currently declining RSI signifies that buying pressure is fading, posing a challenge for Ethereum to build upward momentum. If the RSI continues its downward trend, it could further validate a prolonged bearish phase.
The Moving Average Convergence Divergence (MACD) has also taken a negative turn, with a break below the signal line and an expanding gap between the MACD and its moving average. This crossover indicates that bearish momentum is gathering pace, diminishing the chances of an immediate recovery. The MACD breakdown, when coupled with other bearish signs, further bolsters the case for continued downside.
Looking ahead, ETH might retest crucial support zones. However, a strong rebound from lower levels could give bulls another opportunity to regain lost ground. As of now, the charts imply that Ethereum remains susceptible to further declines.
Support Levels To Monitor: Can Bulls Avert Further Decline?
With focus now shifting to crucial support levels, the first significant support to monitor is around $1,523, a level that previously served as a short-term demand zone. If Ethereum maintains above this zone, it could provide bulls with a base for another rebound attempt. However, a break below this level could signify growing bearish dominance, elevating the risk of deeper losses.
Below $1,523, the next critical support is at $902, coinciding with previous price reactions and serving as a psychological level for traders. A failure to hold here could intensify selling pressure, driving ETH towards other lower support levels.
