After experiencing a downtrend, Ethereum price has started to show signs of recovery as it crossed above the $3,000 zone. Currently, ETH is trading above the 100-hourly simple moving average, indicating a positive upward movement. However, there are still hurdles that the cryptocurrency needs to overcome in order to sustain this recovery.
Bullish Momentum
Ethereum found support at $2,820 before initiating a recovery wave that pushed its price above $3,100. The 100-hourly Simple Moving Average is acting as a key indicator, providing insights into the potential direction of the price movement. Additionally, there is a significant bullish trend line forming with support at $3,110 on the hourly chart of ETH/USD.
Despite the positive movement, Ethereum faced resistance near the $3,165 zone. The bears were active at this level, causing a downside correction in the price. The immediate resistance is now near $3,165, with the first major resistance at $3,200. If Ethereum manages to surpass these resistance levels, it could potentially rise towards $3,350 and even target the $3,500 zone. On the contrary, failure to break above the $3,165 resistance could lead to another decline in the price.
In case of a negative price movement, Ethereum has several support levels to consider. The initial support lies around $3,100, followed by the $3,000 zone. If the price continues to decline, the 50% Fib retracement level at $2,813 and the main support level at $2,940 are crucial areas to watch. A clear break below $2,940 could signal further losses in the near term, potentially driving the price towards $2,820 or even $2,650.
Technical Indicators and Analysis
Analyzing the technical indicators, the hourly MACD for ETH/USD is showing signs of losing momentum in the bullish zone. On the other hand, the hourly RSI is above the 50 level, indicating a positive sentiment among traders. These indicators, along with the support and resistance levels, can provide valuable insights into the future price movement of Ethereum.
Ethereum is currently in a critical stage where the price is trying to recover from recent lows. While there are signs of bullish momentum, the resistance levels pose a significant challenge for the cryptocurrency. Traders and investors should closely monitor the support and resistance levels, along with the technical indicators, to make informed decisions in this volatile market. It is essential to conduct thorough research and analysis before making any investment decisions, as the cryptocurrency market carries inherent risks.
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