Ethereum’s price has encountered stiff resistance at the $3,500 mark, failing to sustain its previous gains. Following this, ETH has corrected and is now trading in a narrow range above $3,400.
At present, Ethereum appears to be consolidating below the $3,500 resistance barrier. The trading price is currently under $3,480 and has fallen below the 100-hourly Simple Moving Average. A significant declining channel has emerged on the hourly chart of ETH/USD, with resistance positioned at $3,470.
Despite earlier momentum, Ethereum’s price reversed just below the $3,550 resistance area, mirroring Bitcoin’s performance. Bearish forces managed to drag the price under the $3,450 threshold. The lowest point was noted around $3,390, from which the price saw a minor recovery, managing to climb back above the $3,420 level. This recovery also saw ETH surpass the 50% Fibonacci retracement level of its previous downward trajectory from the $3,540 swing high to the $3,390 low.
However, bearish sentiment continues to hover near the $3,500 mark. Attempts to breach the 61.8% Fibonacci retracement level from the same downward move have thus far been unsuccessful. The resistance at $3,470 continues to pose a challenge, as indicated by the forming declining channel on the hourly chart.
Currently, Ethereum remains below the $3,500 resistance and the 100-hourly Simple Moving Average. On potential gains, ETH faces its first resistance level around $3,480. A more formidable resistance is located at $3,500, followed by an additional barrier at $3,520. Should Ethereum manage a convincing break above the $3,520 level, it could target the $3,550 resistance, with the next key resistance looming at $3,650. A successful breach of the $3,650 mark might propel the price toward the $3,800 resistance zone.
Conversely, if Ethereum fails to overcome the $3,500 resistance, it could be set for another decline. Initial support on the downside is around $3,420, with the primary support level anchored near the $3,400 mark. A definitive drop below this level may drive the price further down to approximately $3,340. Continuous losses could push Ethereum’s price to the $3,320 support level shortly, with the subsequent critical support resting at $3,250.
Technical indicators suggest a waning bullish momentum. The hourly MACD for ETH/USD indicates a decreasing bullish momentum, while the RSI for ETH/USD currently stands above the 50 mark.
Key support levels to watch include $3,400, with major resistance levels pegged at $3,500.
