Ethereum Slips Lower - Could This Decline Trigger Double-Digit Losses?

Ethereum faces mounting pressure as the smart contract giant extends its downward trajectory.

Technical Breakdown

The second-largest cryptocurrency by market cap continues to test key support levels, with traders watching for potential breakdown scenarios. Current momentum indicators suggest bears maintain control over the short-term price action.

Market Psychology Shift

Investor sentiment appears to be cooling after the recent rally, with profit-taking activity accelerating across major exchanges. The fear of missing out has been replaced by concerns about sustainability at current valuation levels.

Institutional Perspective

While retail traders panic, institutional players view these pullbacks as healthy corrections within a broader bull market. Traditional finance veterans would call this 'profit-taking' - though in crypto, we call it Tuesday.

Looking Ahead

The coming sessions will prove critical for Ethereum's medium-term direction. Either the smart contract pioneer finds its footing here, or we're staring down the barrel of significant downside acceleration. Either way, volatility remains the only guaranteed outcome in this space where 'risk management' is often just another term for 'hoping for the best.'

Ethereum Price Dips Again

Ethereum price remained in a bearish zone after it settled below $4,450, like Bitcoin. ETH price declined below the $4,320 and $4,300 support levels.

The bears even pushed the price below $4,120. A low was formed at $4,000 and the price recently started a minor recovery wave. There was a MOVE above the 23.6% Fib retracement level of the downward wave from the $4,635 swing high to the $4,000 low.

However, the bears remained active near the $4,250 resistance zone and pushed the price lower again. ethereum price is now trading below $4,150 and the 100-hourly Simple Moving Average. Besides, there is a key bearish trend line forming with resistance at $4,360 on the hourly chart of ETH/USD.

On the upside, the price could face resistance NEAR the $4,150 level. The next key resistance is near the $4,220 level. The first major resistance is near the $4,250 level. A clear move above the $4,250 resistance might send the price toward the $4,350 resistance and the trend line.

An upside break above the $4,360 region might call for more gains in the coming sessions. In the stated case, Ether could rise toward the $4,450 resistance zone or even $4,550 in the near term.

Downside Extension In ETH?

If ethereum fails to clear the $4,220 resistance, it could start a fresh decline. Initial support on the downside is near the $4,050 level. The first major support sits near the $4,000 zone.

A clear move below the $4,000 support might push the price toward the $3,880 support. Any more losses might send the price toward the $3,820 region in the near term. The next key support sits at $3,750.

Technical Indicators

Hourly MACDThe MACD for ETH/USD is gaining momentum in the bearish zone.

Hourly RSIThe RSI for ETH/USD is now below the 50 zone.

Major Support Level – $4,050

Major Resistance Level – $4,220