Ethereum Challenged by Bearish Forces as Altcoin Eyes $3,051 Support

Ethereum has faced significant selling pressure in recent trading sessions as broader market trends turn more bearish. After attempting to break above key resistance levels, ETH has encountered obstacles that suggest the prevailing trend is shifting towards a more negative outlook. As the price begins to test the $3,051 support, a potential breakdown could signal a deeper pullback, which could push ETH towards lower support levels.

Key factors contributing to this bearish sentiment include weakening buying interest, market-wide retracements and technical indicators signaling further downside risks. Ethereum’s inability to sustain upward momentum, especially after hitting resistance, suggests the bulls may be losing control, leaving bears in the driver’s seat.

The $3,051 level is critical for the altcoin’s short-term outlook. If the price does not hold above this support, it could accelerate the downward movement, possibly targeting the next support zone. However, if ETH stabilizes here and shows signs of a bullish turn, it could regain upward momentum and resume its recovery.

Technical Signals Point to Bearish Shift: What’s Next for ETH?

Ethereum’s technical indicators paint a worrying picture of the cryptocurrency’s near-term outlook. Price action has struggled to break through the key resistance levels, and the recent downward moves suggest that the bulls may have lost control.

At the time of writing, ETH’s price is still trading below the 4-hour Simple Moving Average (SMA), indicating that there is still bearish pressure in the market. The 4-hour SMA acts as a short-term trend indicator, and when the price is below it, it typically indicates that selling pressure is dominating the market.

This inability to break above the SMA highlights the ongoing battle for Ethereum to recover bullish momentum. Until ETH rises above and closes above the SMA, the downside risks remain intact and the bears are likely to maintain control.

Furthermore, ETH’s Relative Strength Index (RSI) has consistently remained within the bearish zone, reinforcing the negative outlook for Ethereum. Typically, an RSI reading below 50% indicates a lack of upside strength, which suggests that seller the pressure outweighs the buying interest in the market. In Ethereum’s case, the persistent positioning in the bearish zone signals that bulls are struggling to gain traction and push the price up.

Can Ethereum Defend Against the Bears?

Currently, Ethereum’s price is approaching a crucial support level at $3,051, which has become a key point to watch as bearish pressure mounts. This support zone represents a potential floor for Ethereum, and its ability to hold above this level will be crucial in determining the asset’s next move.

A successful defense at $3,051 could stabilize the price and trigger a rebound towards the $3,360 resistance as it may encourage buyers to step in and stop further declines. However, if Ethereum fails to maintain this support and breaks below it, the bearish momentum could intensify and push the price towards lower levels.

Featured image Unsplash, chart from Tradingview.com