Ethereum price started a recovery wave from the $3,050 zone. ETH is up over 10% and is now struggling to clear the $3,550 resistance zone.
- Ethereum started a decent recovery wave from the $3,050 zone.
- The price is trading above $3,350 and the 100-hourly Simple Moving Average.
- There was a break above a major bearish trend line with resistance at $3,400 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could continue to rise if it settles above the $3,550 resistance zone.
Ethereum initiates its recovery phase with a rebound in price.
The Ethereum price experienced a further decline below key levels such as $3,350 and $3,200, mirroring Bitcoin’s movement. It even dipped below the crucial $3,150 support before witnessing a resurgence from bullish investors, testing the $3,050 zone.
Reaching a low at $3,059, the price has begun an upward trajectory. Notably, a robust recovery wave surpassed the $3,350 resistance mark. Additionally, the price breached the 50% Fibonacci retracement level of the downward wave from the $3,675 swing high to the $3,059 low.
Furthermore, a significant bullish development occurred with the breakout above a major bearish trend line, which had resistance at $3,400, as depicted on the hourly chart of ETH/USD. Currently, Ethereum is trading above $3,400 and the 100-hourly Simple Moving Average.
In terms of resistance levels, immediate hurdles lie around the $3,520 level or the 76.4% Fibonacci retracement level from the $3,675 swing high to the $3,059 low. The primary resistance stands at $3,550, followed by a key barrier at $3,675. Surpassing this level could trigger a bullish momentum for Ethereum.
In this scenario, Ether might surge towards the $3,820 mark. A further breakthrough above the $3,820 resistance could propel Ethereum towards the $4,000 barrier. Continued upward momentum may prompt a test of $4,080.
Another Decline In ETH?
If Ethereum fails to clear the $3,550 resistance, it could start another decline. Initial support on the downside is near the $3,380 level.
The first major support is near the $3,320 zone. The next key support could be the $3,220 zone. A clear move below the $3,220 support might send the price toward $3,150. Any more losses might send the price toward the $3,050 level.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is losing momentum in the bullish zone.
Hourly RSI – The RSI for ETH/USD is now above the 50 level.
Major Support Level – $3,380
Major Resistance Level – $3,550