Ethereum Price Confronts Barriers to a New Surge—Can Bulls Prevail?

The Ethereum market has recently faced a downward correction, dipping below the $3,150 mark. Currently, ETH is stabilizing near $3,120, signaling a potential for a new upward trend.

Key Highlights

Ethereum is experiencing a short-term downward correction, falling below the $3,150 level.

The current price is below $3,200, alongside the 100-hourly Simple Moving Average.

A short-term contracting triangle is forming, with resistance at $3,120 on the ETH/USD hourly chart (data sourced from Kraken).

There is potential for a fresh increase if the price remains stable above the $3,040 zone.

Ethereum Price Eyes Fresh Increase

Ethereum’s price recently struggled to initiate a fresh surge beyond the $3,250 threshold, entering a downward correction phase similar to Bitcoin. The decline saw ETH slipping past the $3,150 and $3,120 support levels. Eventually, the bearish momentum drove the price below the pivotal $3,040 zone, approaching the $3,000 support area.

A recent low was marked at $3,016, with the price now in a phase of consolidating losses. It managed to climb above the 23.6% Fibonacci retracement level of the decline from the $3,340 swing high to the $3,016 low point. Ethereum’s price is currently below the $3,200 mark and the 100-hourly Simple Moving Average, facing resistance around the $3,120 level.

On the hourly chart of ETH/USD, a contracting triangle is forming, posing resistance at $3,120. The first significant resistance level is near $3,180, aligning with the 50% Fibonacci retracement level of the decline from $3,340 to $3,016. The primary resistance is establishing itself around $3,220.

A decisive move above the $3,220 resistance could propel the price toward the $3,320 resistance mark. An upward break past the $3,320 resistance might trigger further gains in upcoming sessions, potentially driving Ether towards the $3,450 resistance zone.

Potential for Another ETH Decline?

Should Ethereum fail to surpass the $3,320 resistance, it may face another downturn. Initial support on this downside journey is near the $3,060 level, with the first major support residing around the $3,040 zone. A clear move beneath the $3,040 support could push the price toward $2,980. Further losses might lead Ethereum to the $2,920 support level in the short term, with the next crucial support at $2,880.