Ethereum is once again facing selling pressure as its price slipped below the $4,500 mark, raising concerns of another downward move. According to data from Kraken, ETH is struggling to sustain momentum after recent gains, with analysts warning of a potential dip if the $4,340 support fails.
The second-largest cryptocurrency attempted a recovery after testing the $4,260 zone, climbing above $4,320 and $4,350. Ethereum even surpassed the 50% Fibonacci retracement level of the drop from $4,660 to $4,261, but sellers quickly defended the $4,480 to $4,500 resistance zone.
Currently, Ethereum is trading below $4,450 and the 100-hourly Simple Moving Average. A key bearish trend line has formed at $4,460, limiting upside attempts. Technical charts indicate that ETH needs to decisively break above $4,500 to target $4,565, and subsequently $4,650 or $4,720.
If bulls fail to reclaim control, downside risks remain. Initial support lies at $4,375, followed by $4,340. A breakdown below $4,340 could accelerate losses toward $4,320 and possibly $4,260. Stronger bearish momentum might even pull ETH to $4,150 in the near term.
Technical indicators show weakness:
- Hourly MACD is in the bearish zone.
- Hourly RSI is below 50, indicating fading bullish momentum.
- Major resistance levels: $4,450, $4,500, and $4,565.
- Key support levels: $4,340, $4,260, and $4,150.
Ethereum’s price action suggests that the next few sessions will be critical for its short-term trend. A strong breakout above $4,500 may revive bullish momentum, but failure could open the door for further declines.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Cryptocurrency investments are volatile and risky. Always conduct your research before making any investment decisions.
