Ethereum (ETH) Turns Red beneath $3.4K; Why Upsides May be Challenging

• Ethereum kick-started massive declines from the resistance area at $3,530.
• The price now hovers beneath $3,400 and 100-hourly SMA.
• ETH/USD’s 1hr chart shows a massive bearish trend-line emerging with resistance at $3,460.
• The altcoin might encounter massive hurdles around $3,425, then $3,450.

Ethereum launched a sharp drop from the $3,530 level. The 2nd-largest crypto by market cap plunged to $3,260 and corrected higher at the moment.

Ethereum Price Drops 5%

ETH struggled to accumulate momentum beyond the resistance zones at $3,525 and $3,530. The alternative coin topped around the $3,525 mark and launched a massive downswing. That saw Ether plummeting under the support of $3,450, then $3,420.

Also, the pair moved under the $3,400 mark and 100hr Simple Moving Average. Lastly, Ethereum saw a sharp plunge beneath $3,300. The alt traded at the $3,261 lows and now corrects the incurred losses.

ETH saw a recovery wave beyond $3,300. The token broke the 23.6% Fibonacci retracement zone of the latest drop from $3,580 to $3,261 lows. For now, the price faces resistance at $3,400.

Another crucial hurdle for Ethereum sits at $3,420, the area coinciding with the 50% Fibonacci retracement area of the latest fall from $3,580 to $3,261. Moreover, the hourly chart shows a massive bearish trend-line emerging with a resistance of around $3,460.

If the ETH price overcomes the resistance at $3,450, t might kick-start a decent upsurge. Such a case might see the alt climbing beyond the $3,500 level. Another barrier stands at $3,525, where bears might stiffen their grip.

More Plummets in Ethereum?

ETH’s failure to kick-start new increases beyond $3,420 might welcome new drops. That might see Ether hitting the initial support to the downside at $3,300.

Losing strength will see ETH exploring the support barrier at $3,250. Further downswings here will see the alt accelerating lower. Such a case would see the alt dipping towards $3,050.

However, broad market sentiment remains crucial for Ethereum’s directional bias. The altcoin will likely depend on Bitcoin’s reactions to its upcoming trends. For now, BTC exhibits bearishness, changing hands at $45,289.06, following a 3.06% 24hr loss.

Crucial support area – $3,250.

Crucial resistance area – $3,420.