Ethereum Price Pulls Back from Resistance Level – Is a Trend Reversal Beginning?

Ethereum (ETH) managed to hold above $3,200 and began a new rally, outperforming Bitcoin. ETH strengthened and broke resistance levels at $3,320 and $3,350. However, bears have become active in the range below $3,450, raising questions about a possible trend reversal.

Current Market Situation

The bulls managed to push the price above $3,400, but the high was recorded at $3,448. The price is currently correcting its gains, and there has been a sharp decline below the 23.6% Fibonacci retracement of the ascending wave from the low at $2,914 to the high at $3,448.
On the hourly chart, ETH/USD also broke below the bullish trendline with support at $3,240. Currently, Ethereum is trading near $3,200 and the 100-hour simple moving average.

Resistance and Support Levels

If another uptrend occurs, the price may encounter resistance at $3,250. The next key resistance is at $3,300, and the first major resistance is at $3,320. If the price breaks resistance at $3,320, it may head towards $3,400. A break above $3,400 could lead to further gains in the coming days, and Ethereum could reach the resistance zone at $3,450 or even $3,500.

Possible Scenarios

1. Upside Scenario:
- A break above $3,250 could open the way to $3,300 and $3,400.
- A break above $3,400 could lead to further gains to $3,450 and $3,500.

2. Downside Scenario:
- If Ethereum fails to break resistance at $3,250, it could begin a new decline.
- Initial support on the downside is near $3,200.
- The first major support is located at $3,180 and corresponds to the 50% Fibonacci retracement level of the upward wave from the low of $2,914 to the high of $3,448.

If the price falls below the $3,180 support level, it could approach $3,150. Further losses could push the price down to $3,050.

In Conclusion

The current situation in the Ethereum market requires close monitoring. A break of key resistance or support levels could determine further price movement. Investors should be prepared for potential fluctuations and monitor market developments to make informed decisions.