Ethereum continues its recovery trend, rising above the $3,120 resistance zone. The cryptocurrency market’s leading name, Ethereum, is moving towards a decisive level in the near term. So, which levels should be monitored for Ethereum?
Ethereum’s Price Recovery
According to recent data, if Ethereum’s price exceeds the $3,280 resistance zone, it could start a new rally. However, there is some uncertainty about surpassing this level, and investors are eagerly waiting to see what kind of movement could occur if this critical level is breached.
This strengthening in Ethereum’s price came especially after forming a base above the $2,850 level and alongside the recovery wave seen in other cryptocurrencies like Bitcoin. However, overcoming the significant barriers around $3,000 is considered a critical step for entering a positive zone.
Critical Resistances for ETH
According to technical analysis, on the hourly chart of the ETH/USD pair, breaking two connected downtrend lines above the $3,070 and $3,150 resistance levels is considered a significant development.
Currently, Ethereum is trading above $3,190 and above the 100-hour Simple Moving Average. The immediate resistance level is around $3,200. The first major resistance is near $3,250, while the next key resistance level is set at $3,280. If the price surpasses these levels, an upward momentum towards $3,350 is expected.
A close above the $3,350 resistance could indicate that Ethereum might move towards the $3,420 level. If the $3,420 resistance level is breached, Ethereum could accelerate its climb towards the $3,550 resistance. For investors seeking further gains, ETH could potentially move towards the $3,880 resistance zone in the coming days.
ETH Could Enter a Downtrend if Key Resistances Aren’t Breached
Ethereum (ETH), if it fails to surpass the critical $3,250 resistance soon, could enter a new downtrend. Currently, the first noticeable support on the downside is around $3,150. However, the $3,120 level and the 100-hour Simple Moving Average (SMA) could play a significant role in this downward trend.
If the price dips below the $3,120 support, selling pressure could increase, pushing ETH towards $3,020. If a deeper decline occurs, the price could potentially retreat to as low as $2,965 in the near term.
