Ethereum has encountered difficulties in maintaining its upward momentum after reaching a high of $3,350, leading to a recent decline in its price. Currently, ETH is experiencing a corrective phase but faces significant resistance around the $3,220 level.
The latest decline saw Ethereum drop below key support levels of $3,320 and $3,220, mirroring trends observed in Bitcoin . The price dipped as low as $3,021 before showing signs of recovery. In this corrective bounce, Ethereum has moved back above the $3,050 and $3,120 levels, surpassing the 23.6% Fibonacci retracement level of the preceding downward movement from $3,427 to $3,021. However, with the current trading price below $3,220 and the 100-hourly Simple Moving Average, upward movement remains challenged, particularly around the $3,220 resistance, which aligns with the 50% Fibonacci retracement of the earlier decline.
Resistance levels are establishing themselves with $3,250 as the initial hurdle, followed by a bearish trend line at $3,270. A significant barrier lies above at $3,300, where overcoming this level could lead to an increase towards the next resistance at $3,350. If this level is successfully breached, a further rally could propel ETH towards the $3,420 or even $3,500 range in subsequent sessions.
Conversely, should Ethereum struggle to break through the $3,220 resistance, a further decline may ensue. Initial support levels are noted at $3,120 and more crucially at $3,050. A drop below $3,050 could lead Ethereum to test the $3,020 support, with additional losses potentially driving the price down to the $3,000 level. The next significant support appears at $2,950, setting up a critical juncture for ETH’s price trajectory.
Technical analysis indicates that while the MACD is showing weakening bearish momentum, the RSI has climbed above the neutral 50 mark, hinting at potential volatility ahead.
