Ethereum has recently seen a recovery wave from the $3,230 zone, climbing above $3,350. However, the digital asset is now facing a notable obstacle at the $3,420 mark. Despite starting an upside correction from the $3,240 support zone, Ethereum remains below $3,420 and the 100-hourly Simple Moving Average. There is a crucial bearish trend line forming with resistance near $3,410 on the hourly chart of ETH/USD (data feed via Kraken). For the pair to continue higher, it must clear the resistance levels at $3,420 and $3,450.
Price Movement and Technical Analysis
The Ethereum price recently extended losses, dipping below the $3,350 zone and testing the $3,240 support level before initiating a recovery wave, similar to Bitcoin. Bulls managed to push the price above $3,350 and even above the 61.8% Fib retracement level of the downward move from the $3,518 swing high to the $3,230 low. However, Ethereum appears to be encountering strong resistance around the $3,420 zone, with a bearish trend line and the 100-hourly Simple Moving Average acting as barriers. The immediate hurdles on the upside include the trend line, $3,420, and $3,450 resistance levels. A breakthrough above $3,450 could propel Ethereum towards $3,520, with further resistance at $3,550, $3,620, and $3,650. Failure to overcome the $3,420 resistance level might result in another decline, with initial support at $3,375 and major support at $3,350.
Potential Price Movements
If Ethereum fails to clear the $3,420 resistance, it may face renewed selling pressure, potentially pushing the price towards $3,280 and ultimately $3,240 in the short term. The hourly MACD for ETH/USD indicates a loss of momentum in the bullish zone, while the hourly RSI is currently above the 50 zone. These technical indicators suggest a fragile balance between bullish and bearish forces, with the $3,420 resistance level serving as a critical juncture for Ethereum’s price trajectory.
Ethereum’s price action is currently at a pivotal point, with $3,420 emerging as a major resistance level. Traders and investors should closely monitor the digital asset’s ability to surmount this hurdle to gauge its potential for further upside momentum. Additionally, ongoing technical analysis signals hint at a delicate market sentiment that could sway either way based on Ethereum’s ability to breach key resistance levels.
