Following resistance at $3,500, Ethereum has begun a downward correction. Currently, ETH is consolidating above $3,120 but faces multiple obstacles.
- After failing to close above $3,500, Ethereum corrected its gains.
- The price is now below $3,320 and the 100-hourly Simple Moving Average.
- On the hourly chart of ETH/USD (data feed via Kraken), a short-term bearish trend line is forming with resistance at $3,380.
- If the pair can surpass the $3,300 resistance level, another increase may be on the horizon.
Ethereum Price Retreats to Support
Despite a brief upward movement above $3,320, Ethereum faced limitations compared to Bitcoin. ETH was unable to maintain momentum above $3,500 and subsequently saw corrective movements.
Support levels at $3,320 and $3,300 were breached, leading to a low of $3,141. Currently, the price is consolidating after a minor boost above $3,200. The price also surpassed the 23.6% Fib retracement level from the recent swing high to the low.
Currently trading below $3,280 and the 100-hourly Simple Moving Average, Ethereum is encountering resistance near the $3,240 level. The primary obstacles lie around $3,300 and $3,380, with a bearish trend line forming.
An upward breakout past $3,450 could signal further gains, potentially reaching $3,500 or even $3,550 in the near future.
Potential Ethereum Decline
If Ethereum fails to break the $3,300 resistance, a new downtrend may begin. Initial support levels are around $3,150 and $3,120, with significant support at $3,000.
A drop below $3,120 could push the price towards $3,050 and potentially $3,020. Further losses might lead to a test of the $3,000 support level.
Technical Indicators:
Hourly MACD – The MACD for ETH/USD indicates waning bullish momentum.
Hourly RSI – The RSI for ETH/USD has dropped below the 50 zone.
Major Support Level – $3,120
Major Resistance Level – $3,300
