Despite showing promising signs of progress, Ethereum’s value failed to transcend the stubborn resistance region of $3,725 and was compelled to pare back its gains, rapidly reversing its course to a steady consolidation around $3,475.
Previously, Ethereum had demonstrated an encouraging upward trajectory, successfully breaching the $3,550 threshold and sailing smoothly past the $3,650 mark. However, bearish sentiments began to stir when the cryptocurrency neared the $3,725 territory, where it was met with stiff resistance. Optimistic investors were disappointed when the price hike idled at $3,726 and soon after, began to lose steam, shadowing the tumultuous path taken by Bitcoin.
The signs of a downturn became increasingly apparent as Ethereum’s value fell below $3,600 and $3,550 consecutively. Notably, a key bullish trend line underpinned by a $3,510 support was disrupted, an event noticeable on the hourly chart of ETH/USD. During this downswing, Ethereum’s value took a further hit, dipping below the mid-point Fibonacci retracement level of its previous climb from the low at $3,224 to the high of $3,726.
Currently, Ethereum is hovering around the $3,500 mark, aligning closely with the simple moving average tracking the last hundred hours. As it stands, a resistance level of $3,520 flashes on the immediate horizon, with a more significant barrier expected at $3,560. Should Ethereum gain sufficient momentum to break through these roadblocks, it will face yet another significant hurdle at $3,610. However, if it manages to overcome this challenge, the path to test the $3,650 level could be within reach.
Of course, the coveted zone of triumph remains at $3,725. Successfully vaulting over this lofty resistance could catapult Ethereum into a new bullish rally, potentially propelling the price into the $3,800 territory and beyond. Should Ethereum breach the $3,800 resistance, it could pave the way for a run towards the enticing $4,000 benchmark.
Yet the question remains — What if Ethereum’s price is obstructed by the $3,610 resistance? This could trigger a downward trajectory, with the first support possible near the $3,475 neighborhood.
A more substantial safety net is anticipated near $3,420 — near the 61.8% Fibonacci retracement level from Ethereum’s previous journey from a low of $3,224 to a peak of $3,726. Beyond that, the next vital line of defense could be stationed at $3,340. Should the cryptocurrency lose this stronghold, it could set a course towards the $3,240 level. In a worst-case scenario, the value might even be pushed as low as $3,120.
Crucial technical indicators project a mixed outlook on Ethereum’s future. The Moving Average Convergence Divergence (MACD) for ETH/USD currently points towards a strengthening bearish movement, while the Relative Strength Index (RSI) positions itself under the pivotal 50 level. As such, the prime support and resistance levels to note for the forthcoming days stand at $3,420 and $3,610, respectively.
