Ethereum Price Faces Recovery Hurdles: Examining the Roadblocks Ahead
Ethereum’s price began a recovery wave from the $3,230 zone, climbing above $3,350 but encountering strong resistance at $3,420.
- Current Status: Ethereum started an upside correction from the $3,240 support zone. It is trading below $3,420 and the 100-hour Simple Moving Average.
- Technical Indicators: A key bearish trend line with resistance near $3,410 is forming on the hourly chart of ETH/USD (data feed via Kraken). The price must clear the $3,420 and $3,450 resistance levels to continue higher.
Detailed Analysis
Ethereum’s price extended losses, trading below the $3,350 zone and testing the $3,240 support zone before starting a recovery wave, similar to Bitcoin. The price saw a decent increase above the $3,300 and $3,320 levels, with bulls pushing it above $3,350. It even spiked above the 61.8% Fibonacci retracement level of the downward move from the $3,518 swing high to the $3,230 low. However, strong resistance is evident near the $3,420 zone.
A key bearish trend line is forming with resistance near $3,410 on the hourly chart of ETH/USD. Ethereum remains below $3,420 and the 100-hour Simple Moving Average.
On the upside, the price is facing hurdles near the trend line and $3,420, with the first major resistance near the $3,450 level. This level is close to the 76.4% Fibonacci retracement of the downward move from the $3,518 swing high to the $3,230 low.
Key Levels and Potential Moves for Ethereum
A close above the $3,450 level might propel Ethereum toward the $3,520 resistance. The next significant resistance is near $3,550. An upside break above $3,550 could push the price higher, with the next key resistance at $3,620. Above this level, Ethereum might gain momentum and rise toward $3,650. Further gains could drive Ether to the $3,720 resistance zone.
Potential for Another Drop in ETH?
If Ethereum fails to clear the $3,420 resistance, it could start another decline. Initial support on the downside is near $3,375, with the first major support around the $3,350 zone. A clear move below $3,350 might push the price toward $3,280, and further losses could send it toward the $3,240 level in the near term.
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 zone.
- Major Support Level: $3,300
- Major Resistance Level: $3,420