Ethereum price is in a bearish trend below the $3700 level

Ethereum chart analysis

The price of Ethereum climbed to a multi-month high on Thursday at the $3941 level. After the formation of that level, the bullish momentum weakened, and we started to pull back. That led the price to create a bearish impulse to the $3530 level last night. We stayed down for a short time, then we quickly went back up to the $3800 level. 

However, this morning, the consolidation continued in the zone of the $3800 level. The pressure in that zone in the previous few hours had the effect that the price started a new bearish consolidation and went down to the $3655 level. We are on the way to pull back to the $3600 level. The picture of the chart tells us that a new, stronger, bearish impulse can easily happen. This calls for caution and careful observation. 

Ethereum looks bearish; are we looking at a deeper pullback?

Given the current trend, potential lower targets for Ethereum’s price are the $3500 and $3400 levels. However, there is additional support for the price at the EMA200 moving average and the zone of the $3450 level. It’s important to note that the weekly open price is significantly lower at the $3070 level. To consider a bullish option, we would need to see a positive consolidation and a return above the $3800 level. 

If we manage to regain our position above $ 3800, we must strive to maintain it. This could mark the formation of a new bottom, paving the way for further growth on the bullish side. Excitingly, potential higher targets are within reach at the $3900 and $4000 levels.

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