Ethereum Stumbles in Bullish Ascent, Faces Downturn Threat

Ethereum faces resistance above $3,300 and has formed a possible bullish exhaustion pattern. However, it remains above a crucial parabolic curve with support at $3,000. A weekly close below this support and the $2,900-$3,000 zone could trigger a significant pullback, while a breakout above $3,300 may lead to gains towards $3,630 and potentially $4,000.

Ethereum Struggles to Regain Bullish Momentum, Faces Potential Downtrend

Ethereum (ETH), the second-largest cryptocurrency, is encountering difficulty in regaining bullish momentum above the crucial resistance zone of $3,300. This price level has proven to be a significant barrier for ETH, hindering its upward trajectory.

Current Market Dynamics

Technical analysis of the ETH/USD price chart reveals that the price continues to hold above a parabolic curve on the weekly time frame, with current support established at $3,000. This suggests that the bulls are making an effort to maintain their presence in the market.

However, the bears have been actively pushing against the price near the $3,250 and $3,300 levels, preventing a sustained recovery. The price recently experienced a sharp decline below the 50% Fibonacci retracement level of the upward move from the $2,172 low to the $4,082 high. This has resulted in a test of the $2,900 support, leading to a period of consolidation.

Bullish and Bearish Scenarios

The bulls are currently engaged in a defensive battle near the $2,900 and $3,000 support levels. If they manage to maintain this support, Ethereum could potentially stage another recovery attempt. However, the bears need a weekly close below the parabolic curve, the $2,900 support zone, and the 61.8% Fibonacci retracement level to gain control of the market.

If the price falls below the $2,900-$3,000 support zone, a significant pullback could ensue. In such a scenario, the bears may target the $2,620 support level, with the next major support situated near the 50-week simple moving average (SMA) at $2,200.

Conversely, if Ethereum remains strong above the curve support, it could attempt another rally. The first major resistance lies at $3,300, followed by $3,630. A clear break above $3,300 could pave the way for further gains towards $3,880 and potentially $4,000 in the coming weeks.

Conclusion

Overall, Ethereum's price action is exhibiting mixed signals. While the bulls are attempting to defend key support levels, the bears are applying pressure, aiming for a potential downtrend. A weekly close below $2,900 could trigger a significant decline, whereas a sustained push above $3,300 would indicate a renewed bullish momentum. Traders are advised to monitor the price closely for potential breakout or breakdown scenarios that could provide further clarity on the market's future direction.