Is Ethereum Set for a Major Upswing or Continued Correction?

• Ethereum has faced multiple rejections near the $3,500 resistance since early June.

• After a weekend surge, ETH saw a technical correction, falling below $3,450 and testing key support.

Over the weekend, the Ethereum market displayed a bullish trend and enjoyed a 5% jump to the $3,500 resistance zone. However, the momentum couldn’t be sustained as the cryptocurrency initiated declined below the $3,450 mark. This resistance has been a recurring challenge since June 6, when Ethereum failed to break through the $4,000 level.

On July 1, Ethereum managed to climb above the $3,400 resistance and briefly entered a positive zone with a $3,525 peak, a similar pattern to Bitcoin (BTC). But this bullish phase was short-lived as the price faced a correction, dipping below the $3,450 mark today. It also fell under the 23.6% Fibonacci retracement level, which spans from the $3,350 low to the $3,525 high.

Will Ethereum Hit $4,000?

Despite this pullback, bullish sentiment persists near the $3,440 support level, protecting the 38.2% Fibonacci retracement level from the recent upward move.

At the time of writing, Ethereum traded around $3,446, hovering above the 21-day simple moving average (SMA) but below the 9-day SMA, indicating a short-term correction. However, it remains above the 100-hourly SMA, suggesting some underlying bullish sentiment.

On the upside, Ethereum continues resistance around the $3,500 mark, with a bullish trend line forming near $3,580 on the hourly ETH/USD chart. The major resistance levels are anticipated at $3,700 and $3,750, with a potential close above $3,750. That possibly propels the price towards the $3,900 and $4,000 resistance zones. A decisive break above $4,000 could further drive Ethereum towards the $4,250 level.

Conversely, if Ethereum fails to overcome the $3,500 resistance, it may enter a decline. Initial support is near $3,420, with key support at $3,350. A clear move below this support could see the price drop to $3,150, with further losses potentially driving it below the $3,000 level in the near term.