Cryptocurrency market trends show that the recent increase in Bitcoin price is positively affecting other cryptocurrencies. In this context, promising developments are occurring for Ethereum (ETH) investors. Ethereum‘s price has shown an increase of over 10% with a recovery wave starting from the $3,050 region, and it is currently struggling to surpass the $3,550 resistance zone.
Ethereum Bulls Are Back
Ethereum had joined the downward trend seen in many cryptocurrencies like Bitcoin, falling below the $3,350 level. However, after testing the critical support level of $3,050, ETH gained upward momentum as the bulls returned strongly.
Currently, the Ethereum price is trading above the $3,400 level and is also above the 100-hour Simple Moving Average. This could provide a positive outlook in the short term and increase the potential for the price to continue its upward trend.
Critical Resistances for ETH
Technical analysis indicates that on the hourly chart of the ETH/USD pair, there has been a breakout above a significant declining trend line at the $3,400 resistance. However, the biggest obstacle ahead of the price is the $3,550 level. A sustained close above this level could strengthen Ethereum’s upward trend and help gain more momentum.
In the developing situation, it seems likely that ETH could move towards the $3,820 level. Moreover, a move above this level could mean Ethereum is on its way to the $4,000 resistance.
If ETH Experiences Another Drop!
At first glance, the initial support on the downside is near the $3,380 level. However, a break below this level could lead to a further decline towards the $3,320 region. The real concern is a move below the key support area of $3,220. Such a drop could pull prices down to the $3,150 level and even further losses could lead to the $3,050 level.
Looking at technical indicators, the hourly MACD for ETH/USD is losing momentum in the bullish zone. This could indicate that prices might drop further. However, the hourly RSI is currently above the 50 level, suggesting that some buying could continue.
To identify key levels, the main support is at the $3,380 level, but the main resistance is at a critical point of $3,550.
