Ethereum faces challenges as it attempts to break through crucial resistance levels. Despite efforts to resume its upward trajectory, several barriers are keeping the price under pressure.
Ethereum Fails to Hold Above $3,220
Ethereum began a decline below the key $3,220 resistance level, mirroring similar trends in Bitcoin. The price even fell below the $3,050 mark before finding temporary support from the bulls.
A low was formed near $3,021, and the price has since started a modest recovery. Ethereum managed to climb above $3,050 and $3,120, reaching the 23.6% Fibonacci retracement level of the decline from the $3,427 swing high to the $3,021 low.
Key Barriers Blocking the Path Forward
Currently, Ethereum is trading below $3,220 and the 100-hour simple moving average. On the upside, it faces initial resistance near $3,220, which aligns with the 50% Fibonacci retracement level of the previous decline.
The next major obstacle is at $3,250. On the ETH/USD chart, a critical bearish trendline is forming with resistance at $3,270. The biggest challenge for the bulls lies at the $3,300 level, which could pave the way for further gains if broken. A clear move above $3,300 might push Ethereum toward $3,350. If this level is breached, additional gains could send the price toward $3,420 or even $3,500.
Is Another Ethereum Decline Likely?
If Ethereum fails to clear the $3,220 resistance, it could face another decline. Initial support lies near the $3,120 level, with another key support at $3,050. A decisive break below this level might push the price toward $3,020 or even the psychological $3,000 mark. Additional support is identified near $2,950.
Technical Indicators
MACD (Hourly Chart): Losing momentum in the bearish zone.RSI (Hourly Chart): Currently above the 50 level, indicating a slight balance between bulls and bears.
Key Levels
Support: $3,120, $3,050, $3,000Resistance: $3,220, $3,300, $3,350
Ethereum continues to face challenges that dictate its short-term price movement. Breaking through the critical resistance levels will be essential for a more significant upward trend.
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