Ethereum price undergoes technical adjustment: Can ETH set new highs?
Ethereum price started a wave of downward adjustment from the $3520 area. Despite this, ETH is still firmly above $3420 and may try to initiate another upward movement in the near future.
Ethereum started this wave of downward adjustment after failing to break through the $3520 area. Currently, the price remains above $3420 and the 100 hourly simple moving average, showing a certain support strength. On the hourly chart of ETH/USD, a falling trend line connecting multiple highs is forming, with resistance near $3470.
To continue to move upward, Ethereum must clear the two resistance levels of $3470 and $3520. Previously, Ethereum had launched a good wave of upward movement, successfully breaking through the $3420 and $3450 levels, and even touched the $3500 resistance zone at one point, and formed a high at $3516. However, the price then began to pull back and fell below the $3480 and $3470 levels.
Despite this, the bulls seem to be actively defending the $3,420 support area, having managed to hold the 50% Fibonacci retracement level of the upward range from the $3,350 low to the $3,516 high. Currently, the price of Ethereum remains above $3,420 and the 100 hourly simple moving average, but faces resistance near $3,470 on the upside.
If Ethereum is able to break through the $3,470 resistance, the next important challenge will be the $3,500 level, followed by the $3,520 resistance level. Once it successfully stands above $3,520, Ethereum is expected to attack the $3,550 resistance level. Further resistance is located near $3,650. If Ethereum is able to break through this resistance, the price may continue to rise and even challenge the $3,720 resistance zone.
From the technical indicators, the MACD (moving average convergence-divergence) on the hourly chart is losing momentum in the bullish zone, while the RSI (relative strength index) has fallen below the 50 area, indicating that Ethereum's upward momentum may have weakened. In general, Ethereum is currently in a critical technical adjustment stage. Whether it can break through the resistance level of $3,470 will determine its next trend direction.
