Ethereum ’s price has recently experienced a slight downturn after encountering resistance at the $3,500 level. Currently, ETH is trading above the $3,120 support level, yet it faces multiple obstacles that are restricting further upward movement.
After struggling to maintain momentum above $3,500, Ethereum corrected its earlier gains. The cryptocurrency is trading below the $3,320 threshold and the 100-hourly Simple Moving Average, indicating a bearish trend. A short-term bearish trend line has formed, with resistance identified at $3,380 on the hourly chart for ETH/usd . For Ethereum to initiate another upward movement, it will need to breach the $3,300 resistance level.
In recent trading sessions, Ethereum exhibited some upward movement past the $3,320 level, but this was minimal compared to Bitcoin ’s performance. The price dipped below both the $3,320 and $3,300 support levels, reaching a low of $3,141. Since then, a consolidation phase has taken place, with modest gains pushing the price above the $3,200 level. This movement has allowed Ethereum to surpass the 23.6% Fibonacci retracement level, which is significant when considering recent declines.
At present, Ethereum is trading just under $3,280 and facing challenges near the $3,240 level. Key resistance remains at the $3,300 level, coinciding with a 50% Fibonacci retracement of the recent price drop. To regain bullish momentum, Ethereum must overcome the resistance at $3,380. A successful breakout above this level could propel the cryptocurrency towards the $3,450 zone.
However, if Ethereum is unable to break through the $3,300 resistance, it may be poised for further losses. The initial support level is around $3,150, followed closely by major support at $3,120. A drop below $3,120 might lead the price toward $3,050 and potentially further down to $3,020. The next critical support level is positioned at $3,000, which traders should watch closely.
