Key Points:
- Ethereum moved above $3,320 and $3,350 but faced resistance at $3,420, peaking at $3,426 before a correction.
- ETH is trading below $3,400 and the 100-hour SMA, with key resistance at $3,400 and $3,450.
- Immediate support at $3,350 and major support at $3,320 aligns with the 50% Fibonacci retracement level.
Ethereum (ETH) has embarked on a recovery wave, moving above the $3,320 level and clearing the $3,350 mark. However, the bullish momentum faced significant resistance around the $3,420 level. After reaching a high of $3,426, ETH saw a correction similar to Bitcoin, with its price dipping below key support levels.
Ethereum Recent Price Movements and Technical Analysis
The recent upward move from the $3,230 swing low to the $3,426 high saw Ethereum correcting its gains. The price fell below the $3,380 level and dipped under the 23.6% Fibonacci retracement level of the upward move. The bulls are now attempting to prevent further declines below the $3,320 mark. Currently, Ethereum is trading below $3,400 and the 100-hour Simple Moving Average (SMA).
Resistance and Trend Line Challenges
On the upside, Ethereum is encountering hurdles near the trend line and the $3,400 resistance level. A bearish trend line with resistance near $3,400 is forming on the hourly chart of ETH/USD. The first significant resistance is around $3,420, with the main resistance at $3,4ccessful close above the $3,450 level, which could propel ETH towards the $3,550 resistance level, and further gains could push the price to the $3,620 mark. An upside break beyond $3,620 might see Ethereum targeting the $3,680 level, above which the price could gain momentum and rise towards the $3,720 level. Additional gains could potentially send ETH towards the $3,880 resistance zone.
Downside Risks and Support Levels
Ethereum might face another decline if it fails to clear the $3,400 resistance. The initial support on the downside is near $3,350. The first major support zone is around $3,320, which coincides with the 50% Fibonacci retracement level of the upward move from the $3,230 swing low to the $3,426 high. A breakdown below this support could see ETH revisiting lower levels, risking further downside movement.
Market Sentiment and Future Outlook
Ethereum’s recent price action indicates a cautious yet optimistic sentiment among traders. The ability to sustain gains above critical resistance levels will be crucial for maintaining the upward momentum. Traders are closely watching the $3,400 and $3,450 levels for signs of a bullish breakout. Conversely, failure to hold these levels could lead to renewed selling pressure.
Ethereum’s price recovery above $3,320 marks a positive development, but significant challenges remain. With key resistance levels at $3,420 and $3,450, the bulls need to push through these barriers to continue the upward trajectory. Support levels near $3,320 are crucial for preventing further declines. As Ethereum navigates these pivotal levels, market participants will closely monitor technical indicators and broader market trends to gauge the cryptocurrency’s next move.
