Ethereum Struggles to Recover Above $3,200 Amid Downtrend

By: Eva Baxter

Ethereum has been facing numerous challenges near the $3,200 resistance zone, signalling a potential risk of another major decline if the stagnation persists. There is a key bearish trend line forming which indicates a resistance at $3,120. If there's a close below the $2,900 support zone, Ethereum might see another decline. Earlier attempts for a recovery wave were active above the $3,000 mark, but resistance near $3,280 has caused the price to react to the downside.

Meanwhile, it's noticed that the 90-day options on Deribit are now trading more expensive than calls for the first time since January. This signifies a bias for economic weakness over the next three months.

Given these conditions, traders believe another catalyst needs to occur before a bullish sentiment returns. It's believed that if the price rises above the $3,620 resistance, Ethereum could indeed see a snapshot of accumulated bullish momentum and climb the $3,750 resistance.

In the case of ETH failing to clear the $3,200 resistance, another decline could be on the horizon. The first significant support is near the $2,900 zone, and any further losses could send the price sailing toward the $2,550 mark.