Recently, the price of Ethereum managed to recover above the $2,920 resistance level and even climbed above $3,000. While this is a positive sign for ETH, it is important to note that the cryptocurrency is still trailing behind Bitcoin in terms of gains. The price is currently trading above $2,950 and the 100-hourly Simple Moving Average, indicating a potential uptrend in the short term.
Despite the recovery, Ethereum might face challenges in continuing higher above the $3,050 resistance level. There was a bullish breakout above a key trend line with resistance at $2,900 on the hourly chart of ETH/USD. However, the pair could now struggle to clear the $3,040 and $3,050 resistance levels, potentially leading to a consolidation phase before any further upwards movement.
In case of a downside correction, Ethereum has immediate support near the $3,000 level. The first major support is around $2,950 or the 50% Fib retracement level of the recent upward wave. Further support can be found near the $2,930 level, and a clear move below this level might push the price towards $2,900. On the other hand, the first major resistance is near the $3,050 level, followed by the $3,150 level and ultimately the $3,220 level. Breaking above these resistance levels could signal a bullish trend with potential gains towards $3,350 and even $3,500.
Analyzing the technical indicators, it is observed that the hourly MACD for ETH/USD is losing momentum in the bullish zone. Similarly, the hourly RSI is now above the 50 level, indicating a possible continuation of the upward movement. However, these indicators should be interpreted cautiously as they can change quickly based on market conditions and trading volumes.
While Ethereum has shown signs of recovery and potential bullish momentum, it still faces resistance at key levels. Traders and investors should closely monitor price movements and key levels to make informed decisions regarding their Ethereum holdings.
