Ethereum (ETH) is currently facing a major challenge as it attempts to break above the crucial $3,480 and $3,520 resistance levels. Although there has been a gradual increase in price, reaching above the $3,420 zone, the cryptocurrency is finding it difficult to surge past these key levels.
Despite the positive momentum, the hourly MACD for ETH/USD is gaining strength in the bullish zone. Additionally, the hourly RSI for ETH/USD has crossed above the 50 zone, indicating a potential upward movement in the near future.
If Ethereum manages to clear the $3,480 resistance level, it could pave the way for further gains towards the $3,550 resistance. Breaking above $3,520 might indicate a bullish signal, pushing the price towards the $3,620 level. On the other hand, failure to surpass the $3,480 resistance could trigger a downward spiral, with initial support near $3,420 and further support at the $3,400 zone.
While Ethereum has shown signs of recovery and outperformed Bitcoin in recent movements, the struggle to break key resistance levels highlights a potential roadblock in its upward trend. The consolidation of gains around the $3,482 high indicates a market indecision, with the bulls attempting to defend against further downside movements.
Ethereum is at a crucial juncture where it must overcome key resistance levels to continue its upward trajectory. The technical indicators suggest a bullish momentum, but the inability to clear the $3,480 resistance might lead to a downward correction. Traders and investors should closely monitor the price action around the resistance levels and key support zones to gauge the next potential direction of the cryptocurrency.
