Ethereum's Critical Juncture: Bulls and 1 Bitcoin to NairaBears Battle for Control
The second-largest cryptocurrency continues facing selling pressure after failing to maintain momentum above psychological resistance levels. Ethereum's native token recently retested the crucial $3,720 support area, creating tension between market participants.
Technical Landscape Paints Mixed Picture
Current price action shows ETH trading beneath both the $3,820 level and the 100-hour simple moving average - typically bearish signals for short-term traders. Chart analysts observe a newly formed descending trendline around $3,810 on ETH/USD hourly charts, suggesting persistent overhead resistance.
Fibonacci retracement levels from the recent swing low ($3,631) to high ($3,975) indicate:
- 50% retracement level already breached
- 76.4% level currently acting as support
Potential Scenarios for Ethereum's Next Move
Market observers identify two possible paths for ETH:
Bullish Scenario:
- Clearance of $3,800 resistance
- Break above descending trendline near $3,810
- Subsequent test of $3,850 resistance
- Potential rally toward $3,950-$4,000 zone
Bearish Scenario:
- Failure to overcome $3,800 barrier
- Breakdown below $3,720 support
- Test of $3,640 support cluster
- Possible extension toward $3,550-$3,500 area
Momentum Indicators Show Weakness
Technical tools currently favor bears:
- MACD shows fading bullish momentum
- RSI remains below neutral 50 level
- Volume patterns indicate lack of conviction
Traders should monitor these key levels carefully as Ethereum's price action could determine short-term market direction. The $3,720-$3,800 range remains critical for determining ETH's next significant move.