Ethereum price continues to face challenges in breaking through the $3,500 resistance zone. Despite multiple attempts, ETH is still consolidating below the $3,550 mark. The price is currently trading above $3,450 and the 100-hourly Simple Moving Average, showing signs of stability. However, there is a key bullish trend line forming with crucial support at $3,440 on the hourly chart of ETH/USD, indicating a potential upside if this level holds.
After failing to clear the $3,550 resistance zone in a recent attempt, Ethereum price reacted to the downside and tested the $3,425 level. A low was formed near $3,427, signaling a brief period of bearish pressure. However, the price quickly recovered and climbed above the $3,450 level. In addition, there was a move above the 23.6% Fib retracement level of the previous downward move, indicating a possible bullish momentum building up. The presence of a key bullish trend line with support at $3,440 on the hourly chart of ETH/USD further strengthens the case for a potential upside movement.
On the upside, Ethereum price faces immediate resistance near the $3,500 level, followed by the 50% Fib retracement level at $3,500. A close above the $3,550 resistance level could pave the way for a further rally towards the $3,565 level and beyond. In contrast, if Ethereum fails to clear the $3,500 resistance, a pullback might be on the horizon. Initial support is seen near $3,460, with major support at the $3,440 zone and the trend line. A breach below the $3,440 support level could trigger a bearish movement towards $3,420, with further losses potentially extending to the $3,350 support level.
Looking at the technical indicators, the hourly MACD for ETH/USD is showing signs of losing momentum in the bullish zone. On the other hand, the hourly RSI is currently above the 50 zone, indicating a mixed sentiment among traders. These technical signals, combined with the key resistance and support levels, suggest that Ethereum price is at a critical juncture and could experience significant volatility in the near term. Traders and investors should closely monitor the price action and be prepared for potential breakout or breakdown scenarios.