Ethereum (ETH/USD) has pulled back from its recent high of $3,090, currently trading at $2,965.99 as the second-largest cryptocurrency by market cap encounters resistance at a key technical level.
The digital asset appears to be undergoing a healthy correction after its impressive rally from the June lows, with multiple Fibonacci retracement levels now coming into focus as potential areas of support. Recent price action has formed a clear corrective wave following the breakout above the $2,600 resistance zone.
Ethereum’s inability to sustain momentum above the $3,000 psychological barrier suggests that profit-taking activity has intensified, leading to the current retracement phase that could provide opportunities for strategic entry points.
Ethereum Trend Analysis
The moving average structure continues to favor the bulls, with the shorter-period average maintaining its position above the longer-term counterpart. This configuration reinforces the underlying uptrend that has been in place since the late June recovery began. The current pullback is testing the dynamic support provided by these moving averages, which could serve as a launching pad for the next upward move.
The MACD histogram displays a bearish divergence pattern, with the recent price highs not accompanied by corresponding momentum peaks. This technical development often precedes corrective moves and aligns with the current retracement scenario. However, the MACD lines themselves remain in bullish territory, suggesting that the overall uptrend structure remains intact.
The stochastic oscillator has retreated from overbought territory and is showing signs of stabilization in the middle range. This suggests that the initial wave of selling may be exhausting itself, though the indicator still has room to move lower before reaching oversold conditions where a bounce typically occurs.
Nearby Support Levels
Price action is approaching the 38.2% Fibonacci retracement level at $2,714.27, which represents the first significant support zone for this correction. Should selling pressure persist, the 50% retracement at $2,598.17 would be the next logical target, coinciding with previous resistance-turned-support levels that could attract institutional buying interest.
The 61.8% Fibonacci level at $2,482.07 represents a deeper correction scenario that would bring Ethereum back to the upper boundary of its previous consolidation range. This level could prove to be the line in the sand for maintaining the bullish narrative, as a break below might signal a more significant reversal.
Looking at the broader trend structure, Ethereum has respected the ascending trend line that has guided the uptrend since mid-2023. The current correction is testing this trend line from above, and a successful defense would reinforce the long-term bullish outlook.
For traders monitoring this Ethereum correction, the key resistance levels to watch on any bounce include the recent high at $3,090.11 and the psychological $3,000 level. A decisive reclaim of these levels could set the stage for an extension toward the next Fibonacci extension targets in the $3,200-$3,400 range, depending on the strength of the recovery momentum.
