Ethereum’s price saw a correction, dropping below the $3,300 mark and entering a phase of consolidation while confronting obstacles near the $3,300 resistance zone.
The digital currency initiated this downward correction from a resistance level of $3,400. Subsequently, Ethereum found itself trading below $3,330 and the 100-hourly Simple Moving Average (SMA). On the hourly chart of ETH/USD, a significant bullish trend line broke, with support at $3,295. This disruption allowed the price to spike even lower through the $3,250 support zone, reaching a low of $3,231. Although Ethereum managed to recover slightly, climbing above $3,280, it has yet to regain substantial bullish momentum.
The price briefly tested the 50% Fibonacci retracement level, calculated from the previous high of $3,362 to the recent low of $3,231. Despite this recovery, Ethereum is still trading below $3,300 and its 100-hourly SMA. For any fresh upward movement, Ethereum must first tackle significant resistance near the $3,300 mark, followed by another key resistance point at $3,330, which coincides with the 76.4% Fibonacci retracement from the recent peak.
Should Ethereum manage a close above $3,330, it may set its sights on the $3,350 level as the next hurdle. A successful surge past this point could push the price towards the $3,400 resistance. If the momentum holds, the next challenge for Ethereum would be around the $3,500 mark, with a potential target near the $3,650 resistance zone in the near term.
However, if Ethereum struggles to break past the $3,330 resistance, it risks continuing its downward trajectory. The initial support for this downside move lies near $3,250, with a more substantial support zone around $3,230. A decisive move below this level could drive the price towards $3,180, with further declines possibly pushing it to the $3,080 support level. The next significant support would be at $3,020.
Technical indicators signal a bearish trend for Ethereum. The hourly MACD for ETH/USD is losing momentum, while the hourly Relative Strength Index (RSI) remains below the 50 zone, indicating continued bearish sentiment. Key support for Ethereum is noted at $3,230, with major resistance clustered around $3,330.
Without breaking these critical levels, Ethereum’s potential for upward momentum remains limited in the short term.
