Ethereum has begun a downward correction from the $3,450 zone, transitioning from recent highs. The cryptocurrency is currently consolidating and encountering resistance near the $3,250 level.
Following a surge above the $3,120 resistance, Ethereum mirrored Bitcoin’s upward momentum, surpassing the $3,220 and $3,320 resistance levels and advancing into a positive territory. It even spiked past the $3,400 mark, reaching a new monthly high of $3,445. However, a minor pullback ensued, causing the price to dip below the $3,320 and $3,250 support levels. The low point was recorded at $3,124, where the price is presently stabilizing.
Ethereum is now trading above $3,120 and remains over the 100-hourly Simple Moving Average. On the upside, ETH is facing hurdles at around the $3,230 mark, corresponding with the 50% Fibonacci retracement level of the recent decline from the $3,340 swing high down to the $3,124 low.
Additionally, a bearish trend line has formed, presenting resistance at around $3,240 on the hourly chart of ETH/USD. Immediate resistance is identified at the $3,260 level, with significant resistance forming near $3,320. Should Ethereum successfully move past the $3,320 resistance, it could aim for the $3,450 resistance, potentially setting up further gains toward the $3,550 resistance zone.
Conversely, failure to overcome the $3,250 resistance may initiate another downward correction. Immediate support lies around the $3,150 level, with substantial support in the $3,120 zone. A decisive move below this support could drive the price down to $3,050. Additional losses might push Ethereum further down to the $3,000 support level, with subsequent key support at $2,880.
Technical indicators show that the MACD for ETH/USD is losing traction in the bullish territory, while the RSI for ETH/USD has dipped below the 50 mark. The major support level is positioned at $3,120, and the major resistance level is at $3,250.
