Ethereum’s price has been facing challenges in breaking through the $3,500 resistance zone. Despite several attempts, ETH has not been able to sustain momentum above this crucial level. The recent price action has shown a struggle near the $3,500 zone, indicating a lack of bullish strength in the market.
Currently, Ethereum is consolidating above the $3,380 support level and the 100-hourly Simple Moving Average. This consolidation phase suggests indecision among traders and a potential buildup of momentum for the next move. Additionally, there is a key bullish trend line forming with support at $3,375 on the hourly chart of ETH/USD, indicating a crucial level to monitor for potential downside risk.
Downside Correction and Resistance Levels
Following the failed attempts to clear the $3,500 resistance, Ethereum has experienced a downside correction similar to Bitcoin. The price dropped below key levels such as $3,450 and $3,420, signaling a shift in momentum towards the bears. However, the price found support near $3,375 and is currently consolidating above the 23.6% Fib retracement level of the recent decline.
Upward Potential and Key Levels to Watch
While Ethereum is currently trading above $3,375 and the 100-hourly Simple Moving Average, it faces immediate resistance near the $3,450 level. A break above this level could pave the way for a retest of the $3,500 resistance and potentially higher levels such as $3,550 and $3,640. On the other hand, failure to clear the $3,450 resistance may lead to further downside towards support levels at $3,380, $3,350, and possibly $3,270 in the near term.
Looking at the technical indicators, the hourly MACD for ETH/USD is losing momentum in the bullish zone, suggesting a potential shift in sentiment towards the bears. Additionally, the hourly RSI is now below the 50 zone, indicating a decline in buying pressure and a possible consolidation phase in the near term. Traders should closely monitor these indicators for potential signals of the next price movement in Ethereum.