ETH price has recently experienced a downside correction after encountering resistance at the $3,150 level. However, despite this correction, Ethereum has managed to hold onto its gains and could potentially see another increase from the $3,000 support level.
At present, Ethereum is trading above $3,000 and the 100-hourly Simple Moving Average, indicating a positive outlook in the short term. There is also a bearish trend line forming with resistance at $3,080 on the hourly chart of ETH/USD, suggesting potential hurdles in the near future.
Price Analysis
After surpassing the $3,000 level and reaching a new weekly high at $3,144, Ethereum faced resistance and started a downward correction. The price dipped below the $3,100 level and is currently holding above the 23.6% Fib retracement level of the recent upward move.
The bulls are currently active near the $3,065 support and are defending the 50% Fib retracement level. Immediate resistance is at $3,080, followed by a more significant barrier at $3,150. A successful break above $3,150 could pave the way for further gains towards $3,200 and beyond.
Potential Downside Risks
On the downside, failure to break above the $3,080 resistance and the bearish trend line could result in further downward movement. Initial support is at $3,065, with a more substantial support zone located near $3,000. A clear break below $3,000 might open the doors for a decline towards $2,980 and possibly $2,860 in the short term.
The hourly MACD for ETH/USD is showing signs of losing momentum in the bullish zone, while the hourly RSI has dropped below the 50 level. These indicators suggest a potential shift in momentum, which traders should monitor closely.
Ethereum’s price movement remains fluid and is currently at a critical juncture. While the bulls are actively defending key support levels, the bears are also putting up resistance, creating a tense market environment. Traders should exercise caution and closely monitor price levels and technical indicators to make informed trading decisions.
