Ethereum's Bull Run Stalls: Is a Deeper Correction on the Horizon?

Ethereum (ETH) recently saw a promising surge past $3,350, even surpassing Bitcoin in its momentum. However, this bullish ascent appears to be facing strong headwinds, with the digital asset now retreating from the $3,450 resistance zone. Investors are closely watching if this pullback signals a temporary correction or the beginning of a significant trend reversal for the second-largest cryptocurrency.

ETH Faces Downturn Amidst Key Breaks

After reaching a high of $3,448, Ethereum initiated a sharp downside correction, shedding recent gains. The price has fallen below the 23.6% Fibonacci retracement level of its impressive climb from the $2,914 swing low to the $3,448 peak. Critically, the hourly chart revealed a break below a bullish trend line that had previously offered support at $3,240. Currently, ETH is hovering near the $3,200 mark and its 100-hourly Simple Moving Average, indicating a precarious position for the asset.

Navigating the Crossroads: Resistance and Support

Looking ahead, Ethereum's immediate challenge lies in reclaiming the $3,250 resistance. Should it overcome this, subsequent resistance points include $3,300 and a major hurdle at $3,320. A decisive breach above $3,320 could propel ETH towards $3,400, potentially setting the stage for a return to the $3,450 zone or even $3,500. Conversely, a failure to surpass $3,250 could trigger further declines. Key downside support is anticipated around $3,200, with a more significant floor at $3,180, which aligns with the 50% Fib retracement level. A drop below $3,180 might push the price towards $3,150, with $3,050 and $3,000 standing as the next critical support levels.

Technical Snapshot

From a technical perspective, the Hourly MACD for ETH/USD is currently gaining bearish momentum, while the Hourly RSI has dipped below the 50 mark, suggesting increasing selling pressure. The immediate major support is identified at $3,180, with a major resistance at $3,300.