The Ethereum price has shown signs of recovery as it extended above the $3,120 zone. However, the bulls were unable to break through the $3,220 resistance level, leading to a correction in the price. This correction caused Ethereum to trim its gains after climbing above the $3,150 and $3,200 levels.
One significant indicator of the bearish trend was the break below a major bullish trend line with support at $3,120 on the hourly chart of ETH/USD. This break signaled a shift in momentum as the price dipped below $3,120 and the 100-hourly Simple Moving Average. The bears gained control as the price tested the $3,025 zone, forming a low at $3,025 and consolidating losses.
Ethereum is currently trading below $3,120, with immediate resistance near the $3,070 level. The 23.6% Fib retracement level of the recent decline from the $3,217 swing high to the $3,025 low also poses a resistance barrier. The first major resistance is at $3,120, followed by the 50% Fib retracement level at the same price point. The next key resistance stands at $3,170, above which the price could gain traction and move towards $3,220.
If the bulls manage to push the price above $3,220, Ethereum could aim for the $3,350 resistance, with further gains potentially leading to the $3,500 resistance zone. However, failure to clear the $3,120 resistance level could result in another decline. Initial support lies near $3,025, followed by the $3,000 zone and the main support at $2,950. A break below $2,950 could send the price lower towards $2,820, with a further downside target at $2,650 in the near term.
The hourly MACD for ETH/USD indicates a loss of momentum in the bullish zone, highlighting the shifting market sentiment. Furthermore, the hourly RSI for ETH/USD has dropped below the 50 level, signaling a potential increase in selling pressure.
The Ethereum price has experienced fluctuations, with both bullish and bearish trends influencing its trajectory. Traders and investors are advised to conduct thorough research before making any investment decisions, as the cryptocurrency market carries inherent risks. While there is potential for further upside if key resistance levels are breached, caution is warranted in the current market environment.