Ethereum (ETH) faced another significant downturn this week, falling more than 10% after failing to hold key support levels near $3,550. The decline pushed ETH below $3,400, sparking concerns that the token could see further losses if buyers fail to defend the $3,200 zone.
Ethereum Price Extends Losses
After struggling to break resistance at $3,650, Ethereum began a sharp decline similar to Bitcoin’s recent pullback. The price dropped below $3,500 and $3,450, confirming a new bearish trend.
As selling pressure intensified, ETH dipped as low as $3,058 before attempting a modest recovery. Currently, the token trades below both $3,400 and the 100-hour Simple Moving Average, signaling that sellers remain in control.
According to market data, Ethereum briefly recovered above the 23.6% Fibonacci retracement level of its decline from $3,920 to $3,058, but upside momentum remains weak. A bearish trend line has also formed near $3,450, serving as immediate resistance.
Key Resistance and Support Levels
If bulls can push ETH higher, the first major resistance lies around $3,350, followed by a stronger barrier near $3,500. A breakout above this level could open the door for a rally toward $3,550, and potentially $3,750–$3,800 if momentum strengthens.
However, analysts caution that Ethereum’s outlook remains bearish in the short term. If ETH fails to reclaim $3,500, a renewed decline could test support near $3,250. A decisive drop below $3,200 might trigger further losses toward $3,120 or even $3,050, where bulls last stepped in.
The major support zones are currently identified at $3,200, $3,050, and $3,000, while key resistance remains at $3,450 and $3,500.
Technical Indicators Turn Bearish
Technical readings support the bearish sentiment. The MACD (Moving Average Convergence Divergence) is losing momentum in the negative zone, indicating weaker bullish attempts. The Relative Strength Index (RSI) has also dropped below 50, reflecting the dominance of sellers in the market.
Market analysts suggest that a sustained move below $3,200 could accelerate downward momentum, potentially dragging ETH closer to $3,000 if buying interest doesn’t return.
Market Outlook
Ethereum’s price action comes amid broader crypto market weakness, with investors showing signs of risk aversion following recent volatility. While long-term sentiment remains cautiously optimistic due to institutional accumulation and increasing stablecoin activity on Ethereum, short-term technicals point toward continued pressure.
If bulls can defend the $3,200–$3,000 range and trigger a bounce, it could stabilize the market and set the stage for a rebound. But failure to hold these levels may extend losses into the next support range, erasing more of October’s gains.
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