Ethereum’s price dynamics continue to captivate traders and investors as the cryptocurrency market evolves. Recently, Ethereum (ETH) faced challenges in breaking past the significant $3,220 resistance zone. The digital asset is currently witnessing a downward trend, slowly gravitating towards the $3,060 support level. This analysis provides an in-depth look at the current market scenario for Ethereum, highlighting key resistance and support levels that may shape its future trajectory.
Ethereum Price Consolidation and Challenges
- Ethereum is consolidating and encountering obstacles around the $3,200 mark.
- The price is currently trading below $3,120, positioned under the 100-hourly Simple Moving Average.
- A developing bullish trend line is observed, offering support at $3,070 on the hourly ETH/USD chart, based on Kraken’s data feed.
- The possibility of a fresh upward movement exists if Ethereum can surpass the $3,120 resistance zone.
Ethereum Price Dips Again
Ethereum recently attempted to initiate an upward break above the $3,220 resistance but was unsuccessful, differentiating its trajectory from Bitcoin. Subsequently, ETH embarked on a new downward trend, breaching the $3,150 and $3,120 support thresholds.
As the price descended below $3,100, it tested the $3,070 level, forming a low at $3,069 and entering a consolidation phase. In this phase, it encountered the 23.6% Fibonacci retracement level from the recent decline, ranging from the $3,224 swing high to the $3,069 low.
Currently, Ethereum’s price is stationed below $3,120 and remains under the 100-hourly Simple Moving Average. Despite this, a connecting bullish trend line is materializing with support around $3,070 on the hourly ETH/USD chart.
On the upside, Ethereum faces resistance near the $3,120 level. The initial major resistance is identified near $3,150 or the 50% Fibonacci retracement level of the recent downturn from the $3,224 swing high to the $3,069 low. The primary resistance is now forming near $3,220.
A decisive move above the $3,220 resistance could propel the price towards the $3,350 resistance. An upward breakthrough beyond the $3,350 mark may set the stage for further gains in upcoming sessions. In such a scenario, Ethereum could potentially rise towards the $3,500 resistance zone.
Potential for Further Losses in ETH
Should Ethereum fail to overcome the $3,150 resistance, it may initiate another downward trend. Initial support on the decline is situated near the $3,060 level or the trend line. The first substantial support is positioned around the $3,000 zone.
A clear break below the $3,000 support could drive the price towards $2,880. Additional losses might result in Ethereum moving towards the $2,740 support level in the short term. The subsequent crucial support is located at $2,650.
Technical Indicators
Hourly MACD: The MACD indicator for ETH/USD is gaining traction within the bearish territory.
Hourly RSI: The Relative Strength Index (RSI) for ETH/USD currently resides below the 50 level.
Major Support Level: $3,060
Major Resistance Level: $3,150
