Recently, Ethereum experienced a downside correction from the $3,500 resistance zone. The price of ETH dropped below $3,440 and might face difficulties in staying above $3,380. Despite this correction, Ethereum is still moving higher above the $3,500 zone. The price is currently trading above $3,520 and is also above the 100-hourly Simple Moving Average.
There is a connecting bullish trend line forming with support at $3,450 on the hourly ETH/USD chart. If there is a clear move above the $3,565 resistance zone, the pair could continue to rise. Ethereum price has remained in a bullish zone above the $3,350 resistance level. As ETH extended its increase above $3,500, it lagged behind Bitcoin. Despite this, there was a spike above the $3,550 level, with the price trading as high as $3,563. Currently, Ethereum is consolidating gains near the 23.6% Fib retracement level of the upward move from the $3,412 swing low to the $3,563 high.
Ethereum is currently trading above $3,500 and the 100-hourly Simple Moving Average. The bullish trend line forming with support at $3,450 is near the 76.4% Fib retracement level. If the price remains above the 100-hourly Simple Moving Average, it could attempt a fresh increase. On the upside, Ethereum faces resistance near the $3,550 level, with major hurdles at $3,580 and $3,650. A close above $3,650 could push Ether toward $3,700, with further resistance at $3,720. However, if Ethereum fails to clear the $3,550 resistance, it may start a downside correction.
Looking at the technical indicators, the MACD for ETH/USD is losing momentum in the bullish zone. The hourly RSI for ETH/USD is now above the 50 zone. Initial support on the downside is near $3,500, with major support levels at $3,470, $3,440, and $3,350. The next key support level sits at $3,320.
While Ethereum has faced a downside correction, it still remains in a bullish zone. The price movement in the coming days will largely depend on its ability to break key resistance levels and maintain support levels. It will be interesting to see how Ethereum performs in the face of market fluctuations and external factors.