Ethereum has recently embarked on a downward correction from the $3,450 zone. Currently, the cryptocurrency is consolidating and encountering resistance near the $3,250 mark.
This downward movement follows a previous short-term rise that saw Ethereum surpass the $3,120 resistance, much like Bitcoin. ETH managed to break above the $3,220 and $3,320 resistance levels, venturing into favorable territory. This bullish trend continued as the price surged past $3,400, 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. It touched a low of $3,124 before beginning to consolidate once again.
Currently, Ethereum is trading above $3,120, maintaining its position above the 100-hourly Simple Moving Average. On the upside, ETH faces obstacles around the $3,230 level, aligning with the 50% Fibonacci retracement level of its recent decline from the $3,340 swing high to the $3,124 low. Additionally, a connecting bearish trend line is forming resistance at approximately $3,240 on the hourly chart of ETH/USD.
The foremost hurdle is at the $3,260 level, followed by significant resistance forming near $3,320. Should Ethereum manage to clear the $3,320 resistance, it may pave the way for a rally toward the $3,450 mark. Breaking past the $3,450 resistance could signal further gains, potentially driving the price toward the $3,550 resistance zone.
Conversely, if Ethereum fails to overcome the $3,250 resistance, it may initiate another downward correction. Initial support on the downside is near the $3,150 level, with the first major support situated around the $3,120 zone. A decisive move below this support might push the price toward $3,050. Any additional losses could drive the price to the $3,000 support level in the short term, with the next critical support point at $2,880.
Technical indicators show the hourly MACD for ETH/USD losing momentum in the bullish zone, while the hourly RSI for ETH/USD has fallen below the 50 zone. Key support is established at $3,120, and major resistance at $3,250.
