Ethereum, the second-largest cryptocurrency by market capitalization, is displaying promising bullish patterns as it rebounds from the $3,550 support area. The digital asset appears poised to challenge and potentially surpass the significant $3,680 resistance zone.
- Ethereum experienced a downward correction, briefly revisiting the $3,550 support area.
- The cryptocurrency is currently trading above $3,600, along with being above the 100-hourly Simple Moving Average, indicating a positive trend.
- A connecting bearish trend line is emerging, with resistance identified around $3,650 on the hourly ETH/USD chart, sourced from Kraken data.
- If Ethereum can successfully surpass the $3,650 resistance zone, it may continue its upward trajectory.
Ethereum Price Eyes Fresh Upward Move
Recently, Ethereum struggled to break through the $3,800 resistance zone, prompting a correction similar to Bitcoin’s. This correction saw ETH descend below the $3,650 and $3,600 support thresholds, eventually testing the $3,550 level.
After bottoming out at $3,557, Ethereum is showing signs of a renewed upward movement. The price has climbed above $3,600 and $3,620, reaching the 50% Fibonacci retracement level of the decline from the $3,762 high to the $3,557 low.
Currently, Ethereum is trading above $3,600 and remains above the 100-hourly Simple Moving Average. However, the currency faces resistance around the $3,650 mark, where a connecting bearish trend line also presents an obstacle on the hourly ETH/USD chart.
The first notable resistance level is positioned near $3,685, aligning with the 61.8% Fibonacci retracement of the recent downward move from the $3,762 high. A breakthrough beyond this point could propel Ethereum towards the key $3,750 resistance.
If Ethereum achieves a decisive move above the $3,750 resistance, it is likely to head towards the $3,800 resistance level. A successful break above $3,800 could lead to further gains, potentially pushing Ether towards the $3,880 or even the $3,920 resistance zones in the ensuing sessions.
Potential for Another Downward Slide in ETH?
Should Ethereum fail to break past the $3,650 resistance, there exists a possibility of another downward trend. Initial support on this path is found near the $3,600 level, with the first substantial support at approximately $3,580.
A definitive move below the $3,580 support could drive the price back towards the $3,550 threshold. If the downward pressure continues, Ethereum might descend further to the $3,440 support level, with the next critical support resting at $3,350.
Technical Indicators
Hourly MACD
The MACD for ETH/USD is currently gaining upward momentum within the bullish zone, suggesting a favorable trend.
Hourly RSI
The Relative Strength Index (RSI) for ETH/USD is now positioned above the 50 level, indicating a bullish sentiment.
Major Support Level
$3,550
Major Resistance Level
$3,685
