The recent movement in the price of Ethereum has shown signs of recovery as it started a decent wave from the $3,050 zone. Currently, ETH is trading above $3,350 and the 100-hourly Simple Moving Average, indicating a positive momentum in the market. There was also a break above a major bearish trend line with resistance at $3,400 on the hourly chart of ETH/USD, which further supports the idea of a recovery in the price of Ethereum. The pair is now struggling to clear the $3,550 resistance zone, which could be a crucial level for further price movement.
Although Ethereum experienced a decline below the $3,350 and $3,200 levels, similar to Bitcoin, it managed to find support near the $3,050 zone. A low was formed at $3,059 before the bulls appeared and initiated a recovery wave. The price cleared the 50% Fib retracement level of the downward wave from the $3,675 swing high to the $3,059 low, indicating a strong bullish momentum in the market. Ethereum price is now trading above $3,400 and the 100-hourly Simple Moving Average, suggesting a positive outlook for the cryptocurrency.
In the current scenario, Ether could potentially rally towards the $3,820 level if the bullish momentum continues. A move above the $3,820 resistance could even push Ethereum price towards the $4,000 resistance, with further gains potentially leading to a test of $4,080. However, if Ethereum fails to clear the $3,550 resistance, it could see another decline in price. The initial support on the downside is near $3,380, followed by major support at the $3,320 zone. A clear move below the $3,220 level might signal a further decline towards $3,150, with potential losses extending towards the $3,050 level.
Looking at the technical indicators, the hourly MACD for ETH/USD is losing momentum in the bullish zone, which could indicate a potential reversal in the short term. On the other hand, the hourly RSI for ETH/USD is currently above the 50 level, suggesting a positive sentiment among traders. The major support level for Ethereum is at $3,380, while the major resistance level stands at $3,550, which will be crucial for determining the next price movement.
The recent price movements in Ethereum indicate a potential recovery from the $3,050 zone, with the cryptocurrency showing signs of bullish momentum. However, the inability to clear the $3,550 resistance could lead to another decline in price. Traders and investors are advised to conduct their own research and consider the risks involved before making any investment decisions. Always use the information provided with caution and at your own risk.