Ethereum Price Alert: Bulls Losing Grip Amid Rising Downside Risks

Ethereum has recently attempted a fresh recovery wave above the $4,450 mark but has struggled to maintain upward momentum. The current outlook suggests a potential slide below the $4,220 level, with the price unable to reclaim the $4,400 resistance.

Key Points

Ethereum struggles to stay above $4,400, currently trading below this level.
A short-term declining channel has formed with strong resistance at $4,310.
A breakout above $4,350 could lead to a potential rally.
Major support lies at $4,220; a drop below this level could lead to $4,200 and $4,160.
Technical indicators show MACD in bearish territory and RSI below 50.

In-Depth Analysis

Ethereum has faced significant selling pressure, attempting to regain lost ground after recent declines. The price managed to find support around $4,200 but has struggled to break resistance levels at $4,350 and $4,400. The recent low was at $4,233, with the price now consolidating those losses.

A minor increase above the 23.6% Fibonacci retracement level of the decline from $4,491 to $4,233 suggests some bullish attempts; however, the bulls are facing considerable hurdles near $4,320. The hourly chart indicates a short-term declining channel with resistance at $4,310. A clear move above this level could signify a shift in momentum for the coming sessions.

Market Impact

The current price action of Ethereum reflects cautious market sentiment, with investors adopting a wait-and-see approach. If ETH fails to clear the $4,360 resistance, it could trigger additional sell-offs, pushing the price lower. This would create a ripple effect across the broader crypto market, particularly affecting assets closely tied to Ethereum.

Investment Advice

Investors should remain vigilant during this volatile phase. A successful breach of the $4,350 resistance could present a favorable entry point. Consider registering through Binance registration link or directly entering the code YAOQING88888 to receive a 20% trading fee rebate and other perks. This platform offers the highest rebates in the industry, along with a registration bonus of up to $100.

Conclusion

Ethereum's current technical resistance and market sentiment create uncertainty in price action. Investors should closely monitor key support and resistance levels for timely trading decisions.