Ethereum, one of the leading cryptocurrencies, has recently experienced a downside correction after reaching the $3,450 zone. As the market adjusts, Ethereum is currently consolidating and encountering significant barriers near the $3,250 resistance level. Let’s delve deeper into the recent price movements and what they could mean for Ethereum’s future.
Understanding the Recent Price Movements
- Ethereum initiated a short-term downside correction starting from the $3,450 area.
- The current trading price stands above $3,120, maintaining its position above the 100-hourly Simple Moving Average.
- A connecting bearish trend line is forming resistance at approximately $3,240 on the hourly chart of ETH/USD, based on Kraken data.
- There is potential for the pair to continue its upward trajectory if it maintains stability above the $3,120 zone.
Ethereum Price Hits Support
The Ethereum price witnessed a fresh surge, surpassing the $3,120 resistance, much like Bitcoin. ETH successfully ascended beyond the $3,220 and $3,320 resistance points, pushing further into a positive territory. The price even breached the $3,400 mark, achieving a new monthly high. However, after reaching a peak at $3,445, a slight pullback occurred, causing the price to dip below the $3,320 and $3,250 support levels. Currently, a low has been established at $3,124, and the price is in a consolidation phase.
Ethereum is now trading above $3,120 and is supported by the 100-hourly Simple Moving Average. On the upside, the price is encountering resistance near the $3,230 level, which corresponds with the 50% Fibonacci retracement of the recent decline from the $3,340 swing high to the $3,124 low. Additionally, a connecting bearish trend line presents resistance around $3,240 on the hourly chart of ETH/USD. The first major resistance level is around $3,260, with the primary resistance forming near $3,320. A decisive move above the $3,320 resistance could propel the price towards the $3,450 mark.
Potential for Upside Break
If Ethereum manages to break through the $3,450 resistance level, it might pave the way for further gains in the upcoming sessions. In this scenario, Ether could target the $3,550 resistance zone, reflecting a positive trend continuation.
Possible Downside Risks
On the flip side, if Ethereum fails to overcome the $3,250 resistance, a downside correction might occur. The initial support on the downside is anticipated near the $3,150 level, with the first major support zone around $3,120. A decisive move below the $3,120 support could potentially drive the price towards the $3,050 mark. Any additional losses might see the price approaching the $3,000 level in the near term, with the next significant support sitting at $2,880.
Technical Indicators
Hourly MACD: The MACD for ETH/USD is showing a loss of momentum within the bullish zone.
Hourly RSI: The RSI for ETH/USD is currently positioned below the 50 mark.
Major Support Level: $3,120
Major Resistance Level: $3,250
As the market continues to evolve, closely monitoring these key support and resistance levels can provide valuable insights into Ethereum’s price trajectory. Stay tuned for further updates as the situation develops.
