Ethereum Price Cooling Off: Is It Healthy Consolidation or Fading Momentum?

Ethereum's price recently experienced a fresh increase above the $3,050 mark. Currently, ETH is consolidating its gains and may target further growth if it manages to surpass the $3,180 resistance level.

Key Takeaways

Ethereum has initiated a rise above the $3,020 and $3,050 levels.
The cryptocurrency is trading above the $3,075 line and the 100-hour Simple Moving Average.
A short-term contracting triangle is forming, indicating resistance at $3,150 on the hourly ETH/USD chart.
If Ethereum stabilizes above the $3,180 zone, it could continue to rise.

Ethereum Price Cooling Off

Current Resistance for Ethereum Price

Ethereum's price has remained above $2,950 and kicked off a rise similar to Bitcoin's surge. The ETH price gained momentum as it outgrew the $3,020 and $3,050 resistance levels. However, bears are active under the $3,200 threshold, with a high formed at $3,179 before the price began to consolidate. Recently, the price dipped slightly below the 23.6% Fibonacci retracement level from the recent rally, which started at the $2,914 swing low and peaked at $3,179.

At this moment, Ethereum trades above $3,075 and is positioned above the 100-hourly Simple Moving Average. If Ethereum continues to ascend, it may encounter resistance around the $3,150 mark, coinciding with a short-term contracting triangle shown on the hourly ETH/USD chart.

Ethereum Price Source: ETHUSD on TradingView.com

The next significant resistance level to watch is near $3,180, followed by an important resistance level around $3,220. If Ethereum breaks through the $3,220 resistance, it could drive the price toward the $3,350 barrier. A successful rise above $3,350 could lead to more substantial gains in the upcoming days, potentially pushing Ether towards the $3,450 resistance zone or even reaching $3,500 in a short timeframe.

Potential Downward Movement for ETH

Should Ethereum fail to break above the $3,180 resistance, it may start a downward trend. Initial support on the downside is situated near the $3,080 level, with the first major support close to the $3,015 zone and the 61.8% Fibonacci retracement level from the upward movement between $2,914 and $3,179.

If the price clearly breaches the $3,015 support level, it could decline towards $2,975. Further losses could see Ethereum fall to the $2,920 area, with additional key supports at $2,840 and $2,820.

Technical Indicators

Hourly MACD: The MACD for ETH/USD is showing a decrease in momentum within the bullish zone.
Hourly RSI: The RSI for ETH/USD is presently below the 50 level.
Major Support Level: $3,015
Major Resistance Level: $3,180

Understanding these levels and trends is crucial for investors to navigate the current Ethereum market landscape effectively.