Recently, Ethereum made another attempt to clear the $3,500 resistance zone, but ultimately failed to do so. As a result, the price started a downside correction, similar to Bitcoin, and dropped below key levels such as $3,450 and $3,420. The price even tested as low as $3,375 before forming a consolidation pattern.
Currently, Ethereum is consolidating above the $3,380 support level and the 100-hourly Simple Moving Average. There is a key bullish trend line with support at $3,375, indicating a possible reversal if the price continues to hold above this level. On the upside, the price is facing resistance near $3,450 and the 50% Fib retracement level. The first major resistance is at $3,480, followed by a significant hurdle at $3,500. A close above $3,500 could propel Ether towards $3,550 and potentially even reach $3,640.
Should Ethereum fail to clear the $3,450 resistance level, it may continue to move downwards. Initial support is seen near $3,380 and the aforementioned trend line, with the first major support zone at $3,350. A clear break below $3,350 could push the price towards $3,270 and potentially even lower to $3,220. The next key support level sits at $3,150, posing a critical area for bulls to defend.
Looking at the technical indicators, the hourly MACD for ETH/USD is showing signs of losing momentum in the bullish zone. Additionally, the hourly RSI has dipped below the 50 zone, indicating a potential shift in momentum towards the downside.
Ethereum is currently in a consolidation phase after failing to break above the $3,500 resistance level. While there is still potential for another attempt towards higher levels, the failure to do so could result in a retest of key support levels. Traders and investors should closely monitor price movements and key levels to assess the future direction of Ethereum.
Leave a Reply