Ethereum Encounters $3,500 Barrier: What Lies Ahead for the Leading Altcoin?
Ethereum is currently facing a significant hurdle at the $3,500 mark, causing uncertainty about its next moves in the altcoin market. Despite holding steady above the $3,400 resistance level, Ethereum struggled to surpass $3,500, indicating a potential struggle for further upward momentum.
The price action of Ethereum shows it is trading above $3,400 and the 100-hourly Simple Moving Average, with a notable bullish trend line forming that offers support at $3,350 on the hourly chart of ETH/USD sourced via Kraken. For Ethereum to continue its upward trajectory, it needs to overcome the resistance levels at $3,500 and $3,550.
In recent trading sessions, Ethereum managed to breach the $3,400 resistance and even surged above $3,500, reaching a high of $3,515 before consolidating its gains. A minor correction followed, testing the 23.6% Fib retracement level from the $3,350 swing low to the $3,515 high.
The immediate resistance levels to watch for Ethereum are at $3,520 and $3,550, with a potential breakthrough above $3,550 paving the way for a push towards the $3,650 resistance level. Should Ethereum breach $3,740, it could signal further upside potential toward the $3,800 resistance zone in the near term.
On the flip side, if Ethereum fails to surpass the $3,500 hurdle, a downside correction could be triggered. Initial support is anticipated near $3,420 and the 61.8% Fib retracement level from the $3,350 swing low to the $3,515 high. Further support lies at the $3,350 zone and the established trend line, with a breach below $3,350 potentially leading to a decline towards $3,320 and even $3,250, with a critical support level at $3,220.
In terms of technical indicators, the hourly MACD for ETH/USD shows a loss of momentum in the bullish zone, while the hourly RSI for the same pair is currently above the 50 zone.
In summary, Ethereum’s price action at the $3,500 hurdle will be crucial in determining its next moves in the altcoin market, with a successful breach signaling further upside potential, while a failure could lead to a corrective phase. Traders and investors are advised to monitor these key levels closely to gauge Ethereum’s future price direction accurately.
