Key Takeaways:
– Ethereum began a short-term downside correction from the $3,450 zone.
– The cryptocurrency is trading above $3,120 and remains stable above this zone.
– Rising hurdles have been noted near the $3,250 resistance level.
– If Ethereum surmounts these obstacles, it could further ascend towards the $3,450 resistance.
– However, failure to clear the $3,250 resistance might instigate a more sizeable downside correction.
Ethereum Encounters Hiccups
Ethereum, the second-largest cryptocurrency by market capitalization, had recently demonstrated a promising upside surge above the $3,120 resistance much like its counterpart, Bitcoin. It had successfully managed to scale above the $3,220 and $3,320 thresholds surging into a positive zone.
This bull run allowed Ethereum to eclipse the coveted $3,400 level, crafting a new monthly high. The crypto-asset marked a peak at $3,445 before experiencing a minor drawdown. This dip plunged the price below the $3,320 and $3,250 support levels, with a new low formed at $3,124, where it currently consolidates.
Challenges On The Upswing
Currently, Ethereum’s exchange rate perches above $3,120 and the 100-hourly Simple Moving Average. As the price attempts to rally, it encounters resistance near the $3,230 level, which coincides with the 50% Fibonacci retracement level of its recent decline from a swing high of $3,340 to a low of $3,124.
Adding to this obstruction is a bearish trend line forming resistance at $3,240 on the hourly chart of the ETH/USD pair. The first formidable resistance lurks in the vicinity of the $3,260 mark, while the primary resistance is now crystallizing near the $3,320 level. Should Ethereum be able to notch a convincing move above this resistance, it has the potential to propel prices towards the $3,450 resistance.
In the event of a breakthrough above the $3,450 resistance, Ethereum could herald more gains in the subsequent sessions. Under such circumstances, the altcoin might traverse towards the $3,550 resistance zone.
Potential For Downside Correction
However, if Ethereum falls short of clearing the $3,250 resistance, it might trigger a downside correction. Immediate support on the downside dwells near the $3,150 mark, with major support established near the $3,120 zone.
A distinct downwards shift beneath the $3,120 benchmark might prod the price towards $3,050. Any additional losses could steer Ethereum towards the $3,000 support level in the short-term. Beyond that, the next crucial support hovers at $2,880.
Technical Analysis Overview
From a technical standpoint, the MACD for ETH/USD is gradually losing momentum within the bullish zone. Concurrently, the RSI for ETH/USD is presently positioned below the 50 zone. This concentration indicates a bearish trend amidst declining buying pressure, suggesting potential caution for investors.
In conclusion, Ethereum’s price faces significant hurdles above the $3,250 mark. Its performance in these crucial areas will likely dictate whether the tide turns towards a further rally or downside correction. Amid this uncertainty, prudent investors should keep a close eye on these levels to position their trades effectively.