Ethereum’s recent attempt to climb back up to $2,160 failed, leaving many bullish investors disappointed. The price hit a wall of resistance and couldn’t break through.
Bearish Signals Dominate
This failed breakout is a strong sign that the bears are still in charge. Several key indicators point to a bearish trend:
- Weak Volume: The recovery lacked the strong buying needed to push the price higher. This low volume made it easy for sellers to take control.
- RSI Breakdown: The Relative Strength Index (RSI) has fallen below key levels, showing weakening bullish momentum. A continued downward trend would confirm a longer bearish period.
- MACD Turn: The Moving Average Convergence Divergence (MACD) has also turned negative. This, combined with other bearish signals, suggests a stronger downward trend.
Key Support Levels to Watch
All eyes are now on key support levels to see if Ethereum can avoid further drops.
- $1,523: This is the first major support level. Holding above this could give bulls a chance to fight back. A break below it, however, would be a bad sign.
- $902: This is a crucial psychological support level. If the price falls below $1,523, $902 is the next line of defense. A failure to hold here could lead to a much steeper decline.
The Outlook
For now, the outlook for Ethereum is bearish. While a bounce from lower levels is possible, the current trend suggests more downside is likely. Investors should carefully watch the key support levels mentioned above to gauge the next move.
