Ethereum ’s price has been struggling to maintain momentum below the critical resistance level of $3,500, even as Bitcoin has experienced a rally. Currently, Ethereum is consolidating above $3,120 but faces multiple challenges that hinder its upward trajectory.
After attempting to rise above the $3,300 level, Ethereum ’s gains were capped at around $3,450, leading to a retracement. The price fell below key support levels of $3,320 and $3,300, hitting a low near $3,203. Although there has been a slight rebound above the $3,240 level, Ethereum is still trading under $3,300 and the 100-hourly Simple Moving Average. This indicates ongoing difficulties as it tests the resistance around the $3,260 zone.
The immediate resistance appears to lie at $3,320, coinciding with the 50% Fibonacci retracement level of the recent price drop. A significant resistance level is forming at $3,350, while a short-term contracting triangle is being established, with overhead resistance at $3,370. A decisive break above this threshold could signal a bullish shift, potentially propelling the price toward the $3,450 level and, possibly, the $3,500 zone or higher.
On the downside, should Ethereum fail to surpass the resistance at $3,325, the cryptocurrency might face further declines. Support levels to watch include $3,200, which marks initial support, followed by stronger support around $3,150. A decline below the latter could see prices testing the support level at $3,120, and further losses might push Ethereum down toward $3,050 or even $3,000.
Technical indicators show weakening momentum, with the hourly MACD losing its bullish momentum and the RSI falling below the neutral zone, suggesting ongoing bearish pressure in the market.
