Ethereum price recently initiated an upward movement from the $3,240 support zone. Despite this positive development, the price is currently trading below the $3,420 level and the 100-hourly Simple Moving Average. There is a significant bearish trend line in formation, presenting resistance near $3,410 on the hourly chart of ETH/USD.
For Ethereum to continue its upward trajectory, it must successfully surpass the $3,420 resistance level, followed by the $3,450 resistance level. These hurdles need to be breached for any meaningful price appreciation to occur. The first major resistance level stands at $3,450, near the 76.4% Fib retracement level of the recent downward move from the $3,518 swing high to the $3,230 low.
Failure to break through the $3,420 resistance could result in Ethereum experiencing a downside movement. Initial support is located near $3,375, with a more significant support level at the $3,350 mark. A decisive move below $3,350 might signal further downward pressure, potentially leading the price towards $3,280 and ultimately the $3,240 level in the near term.
The hourly MACD for ETH/USD indicates a weakening momentum in the bullish territory. Furthermore, the hourly Relative Strength Index (RSI) is currently above the 50 zone. These technical indicators suggest a mixed outlook for Ethereum’s price in the short term, with potential for both upward and downward movements.
Ethereum is currently facing a major resistance barrier at $3,420, which will dictate the future price action. The cryptocurrency must successfully clear this hurdle to pave the way for further gains towards $3,550 and beyond. On the contrary, a failure to breach the resistance could lead to a downside movement towards key support levels. Traders and investors are advised to closely monitor the price action and key resistance levels to assess the potential direction of Ethereum’s price in the coming days.
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