Ethereum Price Retreats from Resistance—Are We Seeing a Potential Trend Reversal?

Ethereum's price recently started a new increase above $3,350, but is currently correcting gains from $3,450 and may decline further below $3,200.

Key Takeaways

Ethereum is correcting from a recent high of $3,450 after a brief upward trend.
The price is currently hovering around $3,200 and close to the 100-hourly Simple Moving Average.
A decline has occurred below a bullish trend line with support at $3,240 on the ETH/USD hourly chart.
If Ethereum settles below the $3,200 level, further declines could follow.

Ethereum Price Retreats From Resistance

Ethereum Price Experiences Significant Decline

Ethereum initially managed to maintain its position above $3,200, showing a fresh increase that even surpassed Bitcoin's performance. The ETH price gained traction, breaching the resistance levels of $3,320 and $3,350. The bullish momentum pushed the price beyond $3,400, but selling pressure emerged beneath the $3,450 mark, leading to a peak formation at $3,448. As a result, the price is now adjusting from these gains.

A notable drop occurred below the 23.6% Fibonacci retracement level of the upward wave that rose from a low of $2,914 to the high of $3,448. Moreover, a breach beneath a bullish trend line, which had support at $3,240 on the hourly chart of ETH/USD, has occurred. Currently, Ethereum is trading near the $3,200 threshold and the 100-hourly Simple Moving Average.

Ethereum Price
Source: ETHUSD on TradingView.com

If Ethereum attempts another upward movement, it may encounter resistance around the $3,250 level. The next significant resistance appears near $3,300, followed closely by another major resistance at approximately $3,320. A decisive movement above the $3,320 barrier could propel the price toward the $3,400 resistance zone. If this level is breached, Ether might target the resistance area around $3,450 or even approach $3,500 in the near future.

Is Ethereum Facing More Losses?

Should Ethereum fail to overcome the $3,250 resistance level, a fresh downturn could occur. The initial support on the downside is set around the $3,200 mark, while the first major support is positioned near the $3,180 zone, matching the 50% Fibonacci retracement level from the upward wave starting at $2,914 to the earlier peak at $3,448.

A definitive move below the $3,180 support could lead the price down to $3,150. If losses continue, Ethereum may drop to the $3,050 region, with the next key support level located at $3,000.

Technical Indicators

Hourly MACD: The MACD for ETH/USD is gaining bearish momentum.
Hourly RSI: The RSI for ETH/USD is currently below the 50 level.

Support and Resistance Levels

Major Support Level: $3,180
Major Resistance Level: $3,300