Ethereum recently experienced a surge in price, breaking above the $3,000 resistance level. However, this upward momentum was short-lived as bears quickly entered the market, causing a correction in the price of ETH. The cryptocurrency is currently trading above $2,900 and the 100-hourly Simple Moving Average.
A bearish trend line is forming with resistance at $2,950 on the hourly chart of ETH/USD. This indicates that the bears are gaining control and pushing the price lower. Unless the bulls can defend the $2,865 support level, we may see further downside movement in the price of Ethereum.
After reaching a new multi-week high near $3,032, Ethereum started a downside correction similar to Bitcoin. The price dropped below $3,000 and $2,950, but found support at $2,865. The bulls are now attempting to push the price higher, with resistance levels at $2,950 and $2,975.
Potential for Further Upside Movement
If the bulls are able to break through the $2,975 resistance level, Ethereum could rally towards $3,065 and eventually reach the $3,185 resistance zone. A move above $3,185 might even lead to a test of $3,220. However, if the price fails to clear the $2,975 resistance, we may see another downside correction towards $2,865 and potentially $2,820.
Technical Indicators and Key Levels
The hourly MACD for ETH/USD is losing momentum in the bullish zone, indicating a weakening of buying pressure. The hourly RSI is currently near the 50 level, suggesting a neutral sentiment in the market. Key support levels to watch include $2,900, $2,865, and $2,820, while major resistance levels are at $2,950, $2,975, and $3,000.
Overall, the price of Ethereum is at a critical juncture, with both bulls and bears fighting for control. Traders and investors are advised to conduct their own research and exercise caution when making investment decisions in such a volatile market. Remember, investing carries risks, and it is important to always do your due diligence before entering any trade.