Ethereum Price Struggles: Will Bulls Regain Control?

As a researcher, I’m observing that the Ethereum price has initiated a decline after encountering resistance at around $3,500. Currently, Ethereum is holding steady above the $3,120 level, but it’s facing numerous obstacles on its path.

  • Ethereum failed to gain pace for a close above $3,500 and corrected gains.
  • The price is trading below $3,320 and the 100-hourly Simple Moving Average.
  • There is a short-term connecting bearish trend line forming with resistance at $3,380 on the hourly chart of ETH/USD (data feed via Kraken).
  • The pair could start another increase if it clears the $3,300 resistance level.

Ethereum Price Dips To Support

The cost of Ethereum initially rose significantly past the $3,320 mark, yet its progress was relatively modest in comparison to Bitcoin. Despite attempts, Ethereum couldn’t sustain growth beyond $3,500, leading to a correction in its advance.

Initially, the price dipped below the support at $3,320 and $3,300, reaching a new low at $3,141. Now, it appears to be regrouping, trying to recover from its losses. However, there was a brief surge above the $3,200 level, followed by a rise that surpassed the 23.6% Fibonacci retracement level from the peak at $3,445 down to the trough at $3,141.

Currently, Ethereum’s price is dipping below $3,280 and its 100-hour moving average. On the positive side, there appear to be obstacles for the price around the $3,240 mark. The primary resistance lies at approximately $3,300 level or the 50% Fibonacci retracement point of the recent drop from its peak at $3,445 down to $3,141.

Currently, the primary resistance is building up around the $3,380 level. Additionally, a temporary bearish trend line is being formed with resistance at $3,380 on the hourly Ethereum/USD chart. A decisive break above the $3,380 resistance could potentially propel the price towards the $3,450 resistance level.

As an analyst, I posit that a surge beyond the $3,450 barrier could signal further growth in the upcoming trading periods. Under such circumstances, Ethereum might head towards the $3,500 resistance level, potentially reaching as high as $3,550 in the short term.

More Losses In ETH?

If Ethereum doesn’t manage to surpass the $3,300 barrier, it might initiate a new drop. A potential floor for this decline could be around $3,150. The primary significant support level lies roughly at $3,120.

If the price drops significantly below the $3,120 resistance point, it could potentially fall to the $3,050 support. Further decreases might cause it to approach the nearby $3,020 support. The significant support level lies at $3,000 in the short term.

Technical Indicators

Hourly MACDThe MACD for ETH/USD is losing momentum in the bullish zone.

Hourly RSIThe RSI for ETH/USD is now below the 50 zone.

Major Support Level – $3,120

Major Resistance Level – $3,300

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2025-01-20 06:40