Ethereum (ETH) Wobbles: Is This The Start of A Bearish Spiral?

Ethereum (ETH) struggled to stay above $3,550 and declined further toward $3,200, like Bitcoin. The price is now consolidating and at risk of more losses.

Ethereum Price Dips Sharply

In the past few days, there were some bearish moves in Ethereum. Earlier, ETH attempted a fresh increase above the $3,500 level but the bears remained active. They protected the $3,550 resistance, sparking a fresh decline like Bitcoin.

The price already tested the 50% Fib retracement level of the upward move from the $2,360 swing low to the $4,094 high on a couple of occasions. More importantly, the price is now below the $3,500 level and the 50-day simple moving average (blue).

Ethereum is consolidating above the $3,300 pivot level. It is also holding a connecting bullish trend line with support at $3,280 on the daily chart. Therefore, there are chances of a fresh increase in the short term.

On the upside, the price could face resistance near the $3,500 level and the 50-day simple moving average (blue). The first major resistance sits near the $3,550 level.

The next resistance is near the $3,680 level. A clear move above the $3,680 level could open the doors for a strong increase toward the $3,825 level. If ETH bulls push the price above the $3,825 resistance, the bulls could aim for $4,100.

More Losses In ETH?

Conversely, Ethereum might continue to move down. Immediate support on the downside is near the $3,300 level and the trend line. The first major support sits near the $3,225 level.

A daily close below the $3,225 level might spark more bearish moves in ETH. In the stated case, the price could drop and test the $3,020 support and the 61.8% Fib retracement level of the upward move from the $2,360 swing low to the $4,094 high. If the bulls fail to defend the $3,020 support, Ethereum might even decline and retest the $2,775 zone.

Overall, Ethereum price is showing bearish signs below $3,500 and $3,550. If ETH slides below the $3,300 and $3,220 levels, it could even dive toward the $2,775 support in the coming days.