Ethereum has recently retreated from its all-time highs around 4780, and now faces the psychological block of 3700, which is proving difficult to overcome shortly. It is likely that bulls will defend this support level, and for now, they will try to bounce back and retest the broken uptrend line, which is located near the 3925-barricade.
Long-term bearish perspective
Nevertheless, from the long-term perspective, as long as the bearish scenario prevails, further selling pressure would continue to drag Ethereum down to the 3577 and 3361 barriers, respectively. A clear break below these lower supports could therefore push Ethereum towards the 200-day EMA as the next key level to watch.
In the case of momentum oscillators, there seems to be a tendency to sell. The RSI is floating in bearish territory and momentum is pointing down, below its baseline of 100. The MACD triggered a bearish signal, dragging itself into negative territory, moving below its signal line.
Alternatively, if the bullish momentum peaks, then the buyers will be able to leap over the broken trendline. Hence, they will be watching the 4141 handle and further action will prompt buyers to challenge last week's high at the 4490-mark.
