The recent price action of Ethereum saw a notable correction below the $3,550 support level, subsequently trading under the 100-hourly Simple Moving Average (SMA). Analysts observed a significant bearish trend line forming, with resistance looming around $3,520 on the hourly chart of ETH/USD, sourced via Kraken exchange data.

Following the broader market sentiment, Ethereum retraced below key resistance levels, including $3,720 and $3,650, mirroring Bitcoin’s decline. The downward movement accelerated as the price breached the $3,550 support, entering a short-term bearish phase.

After reaching a low of $3,365, Ethereum’s price is currently consolidating losses, exhibiting bearish signs below the 23.6% Fibonacci retracement level. With immediate resistance near the $3,440 level, the path to recovery faces hurdles, notably at the $3,520 mark, where the aforementioned bearish trend line converges.

Analysts anticipate a potential upside rally if Ethereum manages to surpass the $3,650 resistance, potentially aiming for the $3,825 level. However, failure to breach the $3,520 resistance could prolong the downside momentum, with initial support at $3,365, followed by key levels around $3,320 and $3,250.

Ethereum’s downward spiral intensified as it breached key support levels, including $3,420, with a subsequent low formed at $3,365. While the price is consolidating losses, it continues to exhibit bearish signals below the 23.6% Fib retracement level, suggesting further downside potential.

Currently, Ethereum is struggling to reclaim ground above $3,550 and faces immediate resistance near the $3,440 level. The first major resistance lies at $3,520, followed by the bearish trend line. Overcoming these obstacles is crucial for Ethereum to regain bullish momentum.

On the upside, if Ethereum manages to surpass the $3,520 resistance, it could rally towards the $3,650 level. Further upside momentum might propel ETH towards the $3,825 resistance, with a potential test of $4,000 looming on the horizon.

However, failure to breach the $3,520 resistance could pave the way for further downside movement. Initial support is anticipated near the $3,365 level, with the $3,320 zone serving as a crucial support level. A breach below $3,250 could trigger a sharper decline towards $3,200, followed by $3,150.

Conversely, failure to breach the aforementioned resistance levels could spell further trouble for Ethereum. Initial support is anticipated near the $3,365 level, with subsequent crucial support zones lying at $3,320 and $3,250 respectively. A breach below these levels could precipitate a downward spiral towards the psychological barrier of $3,200, with the $3,150 level serving as the last line of defense for Ethereum bulls.

Technical indicators paint a somber picture for Ethereum’s short-term prospects. The hourly MACD is entrenched in the bearish zone, indicative of prevailing downward momentum, while the hourly RSI has dipped below the pivotal 50 level, underscoring the bearish sentiment pervading the market.

It’s imperative for traders and investors to exercise caution and conduct thorough research before making any investment decisions. Cryptocurrency markets are inherently volatile, and while they present lucrative opportunities, they also entail significant risks. As always, prudent risk management practices are paramount to navigating the turbulent waters of crypto trading.

In conclusion, Ethereum finds itself at a critical juncture, with its price action poised to dictate the near-term trajectory of the broader cryptocurrency market. Whether it succumbs to bearish pressures or mounts a formidable comeback remains to be seen, but one thing is certain – buckle up, for the ride ahead promises to be nothing short of exhilarating.

Technical indicators, including the MACD and RSI, underscore the prevailing bearish sentiment, with the MACD gaining momentum in the bearish zone and the RSI dipping below the 50 level.

As traders navigate the volatile cryptocurrency market, it’s essential to exercise caution and conduct thorough research before making investment decisions. While Ethereum’s price fluctuations present opportunities, they also entail inherent risks. Therefore, prudent risk management strategies are paramount to navigate the evolving landscape of digital asset trading.