Ethereum, the popular digital currency, has recently been caught in a downward correction from the lofty $3,450 zone. The cryptocurrency is currently consolidating and encountering resistance around the $3,250 mark.
The price of Ethereum, which began an incremental decline from the $3,450 zone, is trading over $3,120, safely above the 100-hourly Simple Moving Average. This suggests a certain level of stability, despite the decline. Intriguingly, a connecting bearish trend line is developing with resistance at $3,240 on the hourly chart of ETH/USD. This data, gathered from the Kraken cryptocurrency exchange, indicates that the pair could continue its upward trajectory if it maintains stability above the $3,120 zone.
Recently, the price of Ethereum embarked on a fresh increase above the $3,120 resistance, similar to the trend observed in Bitcoin. Ethereum managed to ascend above the $3,220 and $3,320 resistance levels, pushing further into a positive zone. The cryptocurrency even soared above the $3,400 level, reaching a fresh monthly high. Ethereum reached a high of $3,445 before experiencing a slight pullback. Consequently, the price slipped beneath the $3,320 and $3,250 support levels, with a low forming at $3,124. Currently, the price is in a phase of consolidation.
However, Ethereum seems to be grappling with a few hurdles on its upward journey. The cryptocurrency is encountering resistance near the $3,230 level or the 50% Fib retracement level of the recent decline from the $3,340 swing high to the $3,124 low. The first major resistance is hovering around the $3,260 level, with the main resistance forming near $3,320. A clear breakthrough above the $3,320 resistance could potentially propel the price towards the $3,450 resistance.
If Ethereum manages to break above the $3,450 resistance, it could herald further gains in the forthcoming sessions. In such a case, Ether could potentially climb towards the $3,550 resistance zone.
However, should Ethereum struggle to clear the $3,250 resistance, it may enter a downside correction. Initial support on the downside is close to the $3,150 level, with the first significant support near the $3,120 zone. A clear dip below the $3,120 support could push the price towards $3,050. Further losses could potentially drive the price towards the $3,000 support level in the near term. Beyond this, the next substantial support is situated at $2,880.
From a technical perspective, the MACD for ETH/USD is losing momentum in the bullish zone while the RSI for ETH/USD is now below the 50 zone. The significant support level is $3,120, and the major resistance level is $3,250.
Overall, Ethereum’s price appears to be in a delicate balance, with potential for both gains and losses depending on the resistance and support levels it encounters in the near future.
