Ethereum price faced a significant test as it dropped below the $3,250 support zone and even dipped below $3,150 to touch the $3,080 mark. However, a low was established at $3,087 and the asset is now seeing a recovery, although the momentum is not as strong as seen in Bitcoin.
Breaking above the $3,200 resistance level, Ethereum successfully cleared the 23.6% Fib retracement level of the downward movement from the $3,500 high to the $3,087 low. Additionally, a bullish development took place with the breach of a bearish trend line at $3,220 on the hourly ETH/USD chart.
Despite these positive signs, ETH is currently trading below $3,350 and the 100-hourly Simple Moving Average, indicating that further hurdles need to be overcome for a sustained uptrend. If the price continues to rise, it may encounter resistance near the $3,300 level, followed by major obstacles at $3,350, the 100-hourly Simple Moving Average, and the 61.8% Fib retracement level.
Looking ahead, the next significant resistance levels for Ethereum are at $3,400 and $3,550. A successful breach above the $3,550 resistance could pave the way for a move towards the $3,720 zone in the near future.
However, should Ethereum struggle to clear the $3,300 resistance, a downside scenario could unfold. Initial support is anticipated near $3,185, followed by a more substantial level at $3,120. A breach below $3,120 might push the price towards $3,080 and potentially even to $3,020, with the next critical support level sitting at $2,950.
From a technical standpoint, the hourly MACD for ETH/USD is showing an increase in bullish momentum, while the hourly RSI has now crossed the 50 zone, indicating a positive shift in sentiment.
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All in all, Ethereum’s price action is at a critical juncture, with key resistance levels to overcome and support levels to hold. How it navigates these challenges in the coming days will determine its trajectory in the short term.
