Ethereum’s price has shown signs of recovery as it managed to break above the crucial $2,350 resistance level. This upward movement has sparked hope among investors that ETH could potentially gain bullish momentum in the near future. However, the journey ahead is still uncertain as the cryptocurrency market remains highly volatile.
As per the hourly chart of ETH/USD via Kraken, Ethereum is currently trading below $2,640 and the 100-hourly Simple Moving Average. Despite a connecting bullish trend line forming with support at $2,440, the price is facing strong resistance at the $2,540 and $2,550 levels. This indicates that the bears are actively defending these levels, making it challenging for Ethereum to break through.
On the upside, Ethereum faces major hurdles near the $2,680 level and the 100-hourly Simple Moving Average. If the price manages to surpass these resistance zones, it could potentially reach the $2,720 level and even aim for the $2,860 resistance. A decisive break above $2,920 might pave the way for ETH to hit the $3,000 mark in the near term. However, failing to clear the $2,540 resistance could lead to another downward spiral for Ethereum.
Support Levels and Potential Downside
In case Ethereum struggles to maintain its current upward momentum, the initial support is seen near $2,440 and the established trend line zone. The first major support level lies at $2,365, followed by further downside potential towards $2,250 and $2,120. It is crucial for Ethereum to hold above these support levels to avoid a significant downtrend in the short term.
Technical Indicators and Market Sentiment
The Hourly MACD for ETH/USD is currently gaining momentum in the bullish zone, indicating a potential uptrend. Similarly, the Hourly RSI is above the 50 zone, suggesting that buyers might still have some control over the price action. However, market sentiment remains cautious as Ethereum navigates through key resistance and support levels.
Ethereum’s price recovery has shown promise, but it still faces several challenges ahead. The cryptocurrency market’s volatility and uncertainty make it essential for investors to closely monitor price movements and key levels to make informed trading decisions. As Ethereum continues its journey, only time will tell whether it can sustain its momentum or succumb to market pressures.
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