Will Ethereum Experience a Significant Upward Movement or Persistent Correction

Ethereum has been repeatedly rejected near the $3,500 resistance level since early June.
Following a surge over the weekend, ETH experienced a technical correction, falling below $3,450 and testing crucial support.
During the weekend, the Ethereum market displayed a bullish trend and witnessed a 5% jump to reach the $3,500 resistance zone. However, the momentum could not be sustained as the cryptocurrency began to decline below the $3,450 mark. This resistance has proven to be a persistent challenge since June 6, when Ethereum failed to break through the $4,000 level.
On July 1, Ethereum managed to surpass the $3,400 resistance and briefly entered a positive zone, reaching a peak of $3,525, similar to Bitcoin (BTC). However, this bullish phase was short-lived as the price underwent a correction and dipped below the $3,450 mark today. It also fell below the 23.6% Fibonacci retracement level, which spans from the low of $3,350 to the high of $3,525.
Will Ethereum reach $4,000?
Despite this pullback, bullish sentiment remains near the $3,440 support level, protecting the 38.2% Fibonacci retracement level from the recent upward movement.
As of the time of writing, Ethereum is trading around $3,446, hovering above the 21-day simple moving average (SMA) but below the 9-day SMA, indicating a short-term correction. However, it remains above the 100-hourly SMA, suggesting some underlying bullish sentiment.
On the upside, Ethereum continues to face resistance around the $3,500 mark, with a bullish trend line forming near $3,580 on the hourly ETH/USD chart. The major resistance levels are expected at $3,700 and $3,750, and a potential close above $3,750 could propel the price towards the $3,900 and $4,000 resistance zones. A decisive break above $4,000 could further drive Ethereum towards the $4,250 level.
Conversely, if Ethereum fails to surpass the $3,500 resistance, it may enter a decline. Initial support is near $3,420, with key support at $3,350. A clear move below this support could result in a price drop to $3,150, and further losses could potentially push it below the $3,000 level in the near future.