Recently, Ethereum experienced a recovery wave from the $3,050 zone, signaling a positive trend in the market. The price of ETH is up over 10% and is currently struggling to clear the $3,550 resistance zone. This is an important level to watch as it could potentially dictate the future movement of Ethereum’s price.
Upon closer examination, it is evident that Ethereum started a decent recovery wave from the $3,050 zone. The price is currently trading above $3,350 and the 100-hourly Simple Moving Average, indicating a bullish sentiment in the market. Additionally, there was a break above a major bearish trend line with resistance at $3,400 on the hourly chart of ETH/USD, further confirming the positive momentum.
It is worth noting that Ethereum price extended its decline below the $3,350 and $3,200 levels, much like Bitcoin. However, ETH managed to bounce back from the $3,050 zone, with a low formed at $3,059 before the bulls appeared. The subsequent strong recovery wave above the $3,350 resistance marked a significant turnaround in Ethereum’s price movement.
Looking ahead, Ethereum could rally towards the $3,820 level if the current momentum is sustained. A move above the $3,820 resistance could propel Ethereum towards the $4,000 mark, with further gains potentially testing $4,080. On the flip side, if Ethereum fails to clear the $3,550 resistance, it could trigger another decline in price.
In terms of support levels, initial support on the downside is near the $3,380 level, followed by the $3,320 zone. The next key support level to watch is at $3,220, with a clear move below that potentially sending the price towards $3,150. Any further losses might see Ethereum retesting the $3,050 level.
Analyzing the technical indicators, the hourly MACD for ETH/USD is losing momentum in the bullish zone, indicating a potential shift in momentum. However, the hourly RSI for ETH/USD is currently above the 50 level, suggesting a positive outlook for Ethereum’s price movement.
As with any investment, it is essential to conduct thorough research and exercise caution when making decisions related to buying, selling, or holding assets. The information provided in this article is for educational purposes only and does not constitute financial advice. Investing carries inherent risks, and individuals are advised to make informed decisions based on their own analysis and risk tolerance. It is recommended to use information from this article at your own discretion and risk.
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