Presently, Ethereum is consolidating above the crucial support level of $3,450. The price has managed to stay above $3,500 and is also above the 100-hourly Simple Moving Average. However, a new bearish trend line seems to be forming with resistance at $3,550 on the hourly chart of ETH/USD.
Despite attempting an increase above the $3,550 resistance, Ethereum faced limitations similar to Bitcoin and saw its upsides limited. After reaching a high of $3,614, the price had to trim gains and drop below $3,500, reaching as low as $3,476. Currently, there is a recovery in progress with the price moving back above $3,500.
Immediate resistance is expected around the $3,550 level, followed by the 50% Fib retracement level at the $3,620 mark. The next key resistance levels are projected at $3,650, $3,720, and potentially $3,750. However, failure to clear the $3,550 resistance could initiate another decline, with initial support at $3,500 and major support at $3,475.
In the best-case scenario, if Ethereum manages to surpass all resistance levels and breaches $3,820, the price could even rally towards $4,000. However, a clear move below the $3,420 support level might indicate a downward trend towards $3,320 and potentially $3,240. The Hourly MACD for ETH/USD is currently losing momentum in the bearish zone, while the Hourly RSI is above the 50 level.
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Ethereum’s price consolidation above $3,450 is crucial, and breaking through key resistance levels will determine its future trend. Traders and investors should closely monitor the price movement and technical indicators to make informed decisions in this volatile market.