Ethereum has recently experienced a downward trend, falling below the $3,450 mark. However, the cryptocurrency is now showing signs of recovery, with potential to rise if it surpasses the $3,445 resistance level. Let’s delve into the latest developments and examine what might be in store for Ethereum.
Key Developments in Ethereum’s Price Movement
- Ethereum initiated a new decline, breaking below the $3,500 zone.
- The current trading price is under $3,450, beneath the 100-hourly Simple Moving Average.
- A significant break occurred above a descending trend line, hitting resistance at $3,300 on the hourly ETH/USD chart (data provided by Kraken).
- The pair is poised for a potential increase if it can overcome the $3,450 and $3,500 resistance levels.
Ethereum Price Holds Steady Above $3,200
Ethereum’s price faced challenges in initiating an upward trend beyond the $3,500 level, resulting in extended losses similar to Bitcoin. The bearish momentum intensified as ETH fell below the $3,400 level, reaching lows beneath $3,320. Currently, Ethereum is consolidating above the crucial support levels of $3,220 and $3,200.
A recent low was established at $3,220, and the price is now in a consolidation phase. Notably, there was a break above the $3,250 level, which coincided with the 50% Fib retracement level of the drop from the $3,553 high to the $3,220 low.
Furthermore, Ethereum’s price managed to breach a descending trend line with resistance at $3,300 on the hourly chart. Despite this, ETH remains below $3,450 and the 100-hourly Simple Moving Average.
On the upside, the price faces significant resistance near the $3,445 level, aligning closely with the 61.8% Fib retracement level of the downward move from the $3,553 peak to the $3,220 low. The first major resistance is anticipated at $3,480.
The primary resistance level is now forming near $3,550. Should Ethereum successfully clear this resistance, it could pave the way for a surge towards the $3,650 resistance. An additional breakthrough above this level could propel ETH towards the $3,720 or even the $3,800 resistance zone.
Potential for Another Decline in Ethereum?
In the event that Ethereum fails to surpass the $3,445 resistance, a continued decline could be on the horizon. The initial support on the downside is positioned near the $3,300 level, with the first major support zone located around $3,220.
A decisive move below the $3,200 support level could drive the price down to the $3,120 support area. Further losses might see Ethereum approach the $3,050 support level in the short term, with the next critical support situated at $3,000.
Technical Indicators
- Hourly MACD: The MACD for ETH/USD is losing momentum in the bearish zone.
- Hourly RSI: The RSI for ETH/USD is now positioned above the 50 mark.
- Major Support Level: $3,220
- Major Resistance Level: $3,445
As Ethereum’s price continues to navigate between key support and resistance levels, traders and investors should remain vigilant and informed. The potential for both upward and downward movements highlights the importance of closely monitoring market trends and technical indicators. Stay tuned for further updates and insights as the market evolves.
