Key Takeaways:
– Ethereum experiences a near 10% rise with significant resistance near $2,920
– The cryptocurrency faces significant resistance below the $2,900 mark and the 100-hourly Simple Moving Average
– Future gains could elevate Ethereum to the region of $3,250-$3,320
– Downside risk could see Ethereum prices fall to around $2,420 in the near term
Ethereum Price Recovery Thwarted?
Ethereum, the second-largest cryptocurrency by market capitalization, has experienced an upward trend recently, pushing up towards the formidable $2,500 zone. However, this recovery wave in Ethereum’s price has been confronted with considerable resistance near the $2,920 mark, causing a pause to its bullish momentum. Currently, the price of Ethereum is hovering just below the $2,900 threshold.
Bearish Line of Resistance: The Making of a Roadblock
Further complicating Ethereum’s recovery path is the formation of a critical bearish trend line, appearing with resistance at $2,920. This trend line is evident on the hourly charts of ETH/USD, signaling a possible decline if Ethereum remains below the $2,920 mark in the near term. Significantly, the cryptocurrency is trading below the 100-hourly Simple Moving Average, implying potential downturn risks.
Confronting Resistance: The $2,900 Hurdle
On the upside, the market faces challenges at the $2,900 mark, a significant threshold that Ethereum is currently struggling to surpass. Moreover, the first severe resistance Ethereum must challenge is near the $2,920 level, coinciding with the mentioned bearish trend line or the 61.8% Fib retracement level.
Looking Deeper: The Main Resistance at $3,000
Beyond the immediate hurdles, Ethereum faces its main resistance near the pivotal $3,000 mark. If the currency manages a clear break above this resistance, it could potentially pave the way for a rally towards the $3,120 resistance. Moreover, a decisive upside break above this level might instigate further gains in the coming sessions. In such a case, Ethereum might surge towards the $3,250 resistance zone or possibly hit $3,320 in the near term.
Another Drop in Ethereum’s Value: Possible Downside Scenarios
However, should Ethereum fail to breach the $2,900 resistance level, the currency may experience a sharp drop. On the downside, the initial support is seen near the $2,765 level. Moreover, major support lies close to the $2,650 mark. In the event of a decisive drop below this support level, Ethereum’s value could further decline towards the $2,500 support. Further losses might then steer the market towards the $2,420 support level in the near term. The next critical support is seen at $2,350.
Understanding the Technical Indicators
Ethereum’s hourly MACD, a trend-following momentum indicator, shows an increasing momentum in the bullish zone. Meanwhile, Ethereum’s hourly RSI (Relative Strength Index) — an indicator to assess price momentum — is now above the 50 zone. It is important to note that higher values represent stronger uptrends.
In sum, while Ethereum demonstrates signs of recovery, it also faces multiple levels of resistance that could potentially halt its uptrend. Monitor these key resistance and support levels closely to keep tabs on Ethereum’s price trajectory moving forward.