Explore the recent recovery wave of Ethereum’s price from the $3,220 support level. Ethereum is currently on an upward trajectory, attempting to regain some of its previous value. The significant point to watch is whether Ethereum can break through the $3,550 resistance, which could lead to further price increases.
Overview of Ethereum’s Recent Price Movement
Ethereum has recently initiated a fresh increase in its price, climbing above the crucial $3,350 zone. This surge has led to Ethereum trading above $3,420, with the 100-hourly Simple Moving Average playing a supportive role. A bullish trend line is forming, providing support at $3,425 on the ETH/USD hourly chart, as tracked via Kraken. If Ethereum manages to surpass the $3,520 and $3,550 resistance levels, we could witness a substantial increase in its price.
Ethereum Price Starts Recovery
The Ethereum market remained stable above the $3,220 threshold, mirroring Bitcoin’s recovery wave. This stability allowed ETH to surpass the $3,350 and $3,400 resistance levels, with the price even breaking through the $3,500 mark. Despite this progress, bearish forces are still present, preventing a clear breakthrough above the $3,550 level. A peak was noted at $3,534, with the price currently consolidating its gains. The price has corrected slightly below the 23.6% Fibonacci retracement level, which spans from the $3,226 swing low to the $3,534 high.
Currently, Ethereum is trading above $3,420 and maintaining its position over the 100-hourly Simple Moving Average. A connecting bullish trend line is providing support at $3,425 on the ETH/USD hourly chart. On the upside, the price is encountering resistance near the $3,520 level, with the first significant hurdle around $3,540.
Resistance and Potential Upside
The primary resistance is now forming near the $3,550 level. A decisive move beyond this resistance might propel the price towards the $3,650 mark. If Ethereum can break through the $3,650 resistance, it could lead to further gains in subsequent trading sessions. In such a scenario, Ethereum might approach the $3,720 resistance zone or even reach $3,800.
Potential for Another Decline in Ethereum?
Should Ethereum fail to overcome the $3,550 resistance, the possibility of a downward movement remains. Initial support on the downside can be found near the $3,425 level and the supporting trend line. The first notable support area is around the $3,375 zone. A clear decline below the $3,375 support might drive the price down to the $3,320 support level. Further losses could see the price retreating to the $3,220 support level in the near term, with the next critical support positioned at $3,110.
Technical Indicators for Ethereum
- Hourly MACD: The MACD for ETH/USD is currently losing momentum within the bullish zone, indicating a potential slowdown in the upward trend.
- Hourly RSI: The RSI for ETH/USD is holding above the 50 mark, suggesting a relatively stable market sentiment.
- Major Support Level: $3,425
- Major Resistance Level: $3,550
As Ethereum continues its recovery wave, traders and investors should monitor these critical levels and technical indicators to anticipate potential price movements. Whether Ethereum can maintain its upward trend or face another decline will largely depend on its ability to break past the identified resistance levels.
