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Is Ethereum Signaling a Bearish Extension, Poised for a Short-Term Downtrend?

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moving average. If it fails to stay above $3,700, there could be a sharp decline towards the $3,500 support level.

In the past few days, Ethereum price has seen a decline below the $4,200 and $4,000 support levels. The recent drop has put a lot of pressure on ETH, with the cryptocurrency struggling to gain bullish momentum. Currently, the price is trading below the $3,840 resistance level and the 100-hourly moving average.

If Ethereum fails to stay above the $3,700 support level, there is a risk of a sharp decline in the near term. The next key support is near the $3,500 level, below which the price could even test the $3,200 support zone. On the upside, the $3,840 level and the 100-hourly moving average are important hurdles for the bulls.

The technical indicators for the cryptocurrency are currently showing mixed signals. The MACD is slowly losing momentum in the bearish zone, while the RSI is well below the 50 level. Overall, the price action is neutral-to-bearish, with a strong possibility of further downside movement if the $3,700 support is breached.

In a broader market context, Ethereum price is still holding above key support levels. The recent drop could be a healthy correction after the significant rally seen in the past few weeks. As long as the price stays above the $3,500 support level, there is a chance for a rebound towards the $4,000 resistance level in the short term.

In conclusion, Ethereum price is currently showing some bearish signs below the $3,840 resistance level. If the price fails to hold the $3,700 support, there could be a sharp decline towards the $3,500 and $3,200 support levels. However, if the bulls manage to push the price above $3,840, there is a chance for a rebound towards the $4,000 resistance level. Traders and investors should keep a close eye on the key support and resistance levels mentioned to make informed decisions in the coming days.

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