The price of Ethereum has recently experienced a downside correction, starting from the $3,520 zone. Despite this correction, ETH remains stable above $3,420 and there is a possibility of another increase in the near term. The price is currently trading above $3,420 and is also above the 100-hourly Simple Moving Average. However, there is a connecting bearish trend line forming with resistance near $3,470 on the hourly chart of ETH/USD.
Ethereum started a decent upward move above the $3,420 level, even managing to clear the $3,450 level to enter a short-term positive zone. The price successfully crossed the $3,500 resistance zone, reaching a high of $3,516 before beginning a downside correction. During this correction, the price moved below the $3,480 and $3,470 levels, falling below the 23.6% Fib retracement level. Despite this, the bulls seem to be active near the $3,420 support zone, protecting the 50% Fib retracement level.
As the price of Ethereum continues to trade above $3,420 and the 100-hourly Simple Moving Average, it is facing resistance near the $3,470 level. Additionally, there is a connecting bearish trend line with resistance at this level. The first major resistance beyond this point is near $3,500, followed by a major hurdle at the $3,520 level. A breakthrough past $3,520 could push Ether towards $3,550, with further resistance at $3,650 and $3,720. On the other hand, failure to clear the $3,470 resistance could lead to a downward trend. Initial support is near $3,435, with the first major support at $3,420. A clear break below $3,420 could send the price towards $3,350 and potentially $3,320 in the short term.
The hourly MACD for ETH/USD is showing signs of losing momentum in the bullish zone, indicating a possible reversal. Similarly, the hourly RSI is now below the 50 zone, suggesting a shift in market sentiment. Traders and investors should keep a close eye on these technical indicators to gauge the future price movements of Ethereum.
