Ethereum Flounders After Price Rejection, Stumbles at $3,420 Resistance

Ethereum's bullish momentum waned as it faced resistance at $3,650, leading to a decline below the $3,500 support. Retesting the $3,320 support, Ethereum shows signs of recovery, but faces resistance at $3,420 and the 100-hourly SMA. A break above $3,450 could indicate bullish momentum, potentially pushing the price towards $3,650. However, failure to clear $3,420 resistance may result in further losses towards $3,250 or $3,220.

Ethereum Wobbles Amid Price Rejection, Faces Resistance at $3,420

Ethereum's recent bullish trajectory has encountered a roadblock, with the price facing rejection at the $3,650 zone and initiating a downward correction. The cryptocurrency has retested the $3,320 support level and is attempting to regain momentum.

Technical analysis indicates a bearish trend line forming with resistance near $3,420 on the hourly chart of ETH/USD. Ethereum's price is currently trading below $3,500 and the 100-hourly Simple Moving Average, suggesting a bearish bias in the short term.

Immediate resistance is encountered at the $3,400 level, coinciding with the 23.6% Fib retracement level of the downtrend. The first major resistance is at $3,420, where it intersects with the bearish trend line. This level poses a significant hurdle for Ethereum's recovery.

Should the price manage to break above $3,420, the next key resistance is at $3,450, coinciding with the 50% Fib retracement level. A sustained move above this level could signal a potential bullish reversal.

Further upside momentum could push the price towards the 100-hourly Simple Moving Average near $3,520. A decisive break above this level could trigger a surge towards the $3,650 resistance barrier.

However, if Ethereum fails to overcome the $3,420 resistance, it could continue its downward trajectory. Initial support is at $3,320, followed by $3,250 and $3,220. A clear move below $3,220 could lead to a decline towards $3,120 and even $3,040.

Technical indicators are also suggesting bearish pressure. The MACD for ETH/USD is losing momentum in the bearish zone, while the RSI for ETH/USD is below the 50 level.

Overall, Ethereum's price is facing significant resistance at $3,420. A sustained move above this level could indicate a potential bullish reversal, while a failure to break through could result in further declines. The cryptocurrency's price action in the coming hours and days will be crucial in determining its short-term trajectory.

Disclaimer: This analysis is provided for educational purposes only. It does not constitute investment advice and should not be relied upon as such. Investing carries risks, and you should always conduct your own research before making any investment decisions.