- Ethereum’s price is attempting to rise again above the $3,420 resistance level.
- The cryptocurrency is currently trading above $3,400, supported by the 100-hourly Simple Moving Average.
- Recent technical analysis shows a break above a bearish trend line with resistance close to $3,390 on the hourly ETH/USD chart.
- The significant resistance levels to break for further gains are $3,480 and $3,520.
Ethereum is showing signs of a potential surge, but critical resistance levels must be cleared to confirm a bullish trend.
Ethereum Shows Signs of Recovery
Ethereum appears to be staging a modest recovery above $3,350, even outperforming Bitcoin as it surpassed the $3,400 resistance. Crucially, ETH broke through a bearish trend line with a resistance point near $3,390 on the hourly ETH/USD chart.
The cryptocurrency continued its upward trajectory, moving past the $3,450 resistance area. A peak was reached at $3,482, and Ethereum has since been consolidating these gains. The price saw a slight pullback below $3,450, and it dipped beneath the 23.6% Fibonacci retracement level, calculated from the $3,328 low to the $3,482 high.
Currently, bulls are attempting to maintain the price above $3,420. Ethereum remains above $3,400 and is supported by the 100-hourly Simple Moving Average.
However, on the upside, the $3,480 level poses substantial resistance. The first key resistance stands at $3,500, followed by another significant barrier at $3,520. A firm close above $3,520 could pave the way for Ethereum to target the $3,550 mark.
Potential for Further Downside
Should Ethereum struggle to overcome the $3,480 resistance, it risks starting another downward trend. Initial support is noted near $3,420, with the first major support at the $3,400 level, situated around the 50% Fibonacci retracement mark from the $3,328 low to $3,482 high.
If the $3,400 support fails to hold, Ethereum may decline further towards the $3,320 area. Extended losses could drive the price down to the $3,240 threshold in the short term.
Technical indicators suggest a positive sentiment: the MACD for ETH/USD is showing bullish momentum, and the RSI stands above the 50 level, indicating ongoing buying pressure.
Conclusion
In summary, Ethereum is attempting to break through significant resistance levels to enable further upward movement. Traders should closely monitor the $3,480 and $3,520 resistance zones for indications of a sustained rally. Conversely, failure to maintain key support levels could trigger another round of declines, bringing critical supports into focus.
