Ethereum ’s price has stabilized above the $3,500 level, showing signs of consolidation as it prepares for a potential target above the $3,600 resistance level. Following a correction from a peak around $3,685, the cryptocurrency is presently trading well above $3,520 and maintains its position above the 100-hour Simple Moving Average.
The recent upward trend was initiated after Ethereum found support at the $3,250 level and subsequently surged past several resistance levels, crossing the $3,500 and $3,550 levels. The bulls pushed the price as high as $3,688 before a slight correction took place. This decline saw the price dip briefly below the $3,650 and $3,620 levels, also moving below the 23.6% Fibonacci retracement level derived from the upward trajectory that started at $3,255 and peaked at $3,688.
Currently, Ethereum is contending with significant resistance near the $3,600 level, threatened further by a developing bearish trendline on the hourly chart. Additional strong resistance is indicated around $3,650, while the main barrier is at the $3,680 mark. A breakthrough above $3,680 could propel Ethereum toward $3,750 and potentially as high as $3,880 or even $3,920 in subsequent trading sessions.
Conversely, if Ethereum is unable to breach the $3,650 resistance, it may face a downward correction. The initial support is positioned around $3,540, with a critical support level at $3,500. A drop below $3,500 could trigger a decline towards the 50% Fibonacci retracement level of the current upward movement at approximately $3,470, with further risks of falling toward the $3,400 support area, and subsequently, $3,350.
In terms of technical indicators, the hourly MACD is displaying weakening momentum in the bullish territory, while the Relative Strength Index (RSI) remains positioned above the neutral 50 level, indicating potential bullish sentiment. The market is closely monitoring these levels as Ethereum navigates its next moves.
