Ethereum has encountered difficulties in maintaining its upward momentum after reaching a peak near $3,420. The cryptocurrency has seen a decline and is currently nearing the $3,150 support level, raising concerns about its potential to initiate a new rally.
Initially, Ethereum experienced a promising rise, surpassing several resistance levels including $3,320, $3,350, and even briefly touching $3,420. Following this peak, however, a notable correction ensued, leading to a drop below the significant support levels of $3,320 and $3,220. A critical technical break occurred as the price fell below a contracting triangle pattern on the hourly chart, with a low established at $3,161. Currently, Ethereum is trading below $3,250 and the 100-hourly Simple Moving Average.
Key resistance levels are forming as Ethereum attempts to recover from this recent slump. The immediate resistance is positioned near $3,250, while a more substantial resistance level exists closer to $3,300. For Ethereum to regain traction, it must first overcome the $3,250 threshold; a successful break above this could pave the way to challenge the $3,350 resistance, potentially allowing for more significant gains thereafter. Further upside momentum could see Ethereum retest the $3,420 area or approach $3,500 in the next phases.
Conversely, if the cryptocurrency fails to break through the $3,250 resistance, it may be poised for additional losses. The first line of support below is around $3,150, followed by a more critical support level near $3,120. Should the price dip below $3,120, it might further decline toward the $3,050 and possibly the $3,020 support levels, with the next significant support lurking at $3,000.
Overall, the technical indicators suggest a bearish outlook, with the momentum pointing downward as the price struggles with crucial resistance levels.
