Ethereum (ETH) has been holding steady above the crucial $3,400 resistance level, showing resilience in the face of recent market challenges. Despite several attempts, ETH is currently struggling to break through the significant $3,500 barrier.
Current Market Situation
ETH is currently trading around the $3,500 mark, maintaining its position above $3,400 with support from the 100-hourly Simple Moving Average (SMA). On the hourly chart of ETH/USD sourced from Kraken, there’s a noticeable bullish trend line forming at the $3,350 support level.
Can Ethereum Overcome This Hurdle?
Although Ethereum has maintained a bullish trend above $3,350, its journey past $3,400 has been met with resistance around $3,500. This is unlike Bitcoin, which recently surged past $65,000. Ethereum peaked at $3,515 before consolidating, briefly correcting to test the 23.6% Fibonacci retracement level from its recent swing low to high.
Currently, Ethereum’s price action remains positive above $3,400 and the 100-hourly SMA, supported by the bullish trend line near $3,350. Resistance is notably strong around $3,500.
Key Levels to Watch
Resistance Levels: Immediate resistance is expected near $3,520, followed by a major hurdle at $3,550.
Upside Potential: Breaking above $3,550 could propel ETH towards the next resistance levels at $3,650 and potentially $3,800 in the near future.
Support and Potential Corrections
If Ethereum fails to surpass the $3,500 resistance, a downside correction could see initial support around $3,420, aligned with the 61.8% Fibonacci retracement level. Stronger support levels include $3,350, where the bullish trend line offers additional backing.
Primary Support: $3,350
Further Support: Levels to monitor include $3,320, $3,250, and $3,220.
Technical Indicators
MACD: Hourly MACD for ETH/USD shows a potential loss in bullish momentum.
RSI: The hourly RSI indicates strength above the 50 level, suggesting ongoing positive sentiment but with cautious momentum.
Conclusion
Ethereum faces a pivotal moment at the $3,500 resistance level. A breakthrough could signify further upward movement, targeting higher resistances. Conversely, a failure to breach $3,500 might trigger corrective moves towards established support levels. Traders should remain vigilant of these dynamics to navigate Ethereum’s evolving price action effectively.
