Recent cryptocurrency market trends suggest a positive impact on various digital currencies following Bitcoin‘s price increase. Ethereum (ETH), in particular, is experiencing a promising phase with its value climbing over 10%. Starting from a low of $3,050, Ethereum is now contesting the resistance level of $3,550.
Ethereum Sees a Resurgence After Slump
Following a market decline that affected several cryptocurrencies including Bitcoin, Ethereum’s value dipped below the $3,350 mark. A swift turnaround ensued as Ethereum found strong support at $3,050 and initiated a robust recovery, signaling a strong comeback by the bulls.
Trading above $3,400, Ethereum’s current price is also above the 100-hour Simple Moving Average, hinting at a potentially bullish short-term trend and raising prospects for further price ascension.
Key Resistance Levels for Ethereum in Focus
Technical analysis reveals that Ethereum has successfully breached a key bearish trend line on the hourly chart of the ETH/USD pair at $3,400. The next significant hurdle is the $3,550 resistance zone, and overcoming it could propel Ethereum towards $3,820 and potentially the $4,000 mark.
Downside Risks Remain for Ethereum
On the flip side, Ethereum’s immediate support lies near $3,380. If prices break below this level, Ethereum could see a drop towards $3,320 or even the pivotal $3,220 support area. A significant breach under this could lead to a slide back to $3,150 or lower.
While the MACD indicator for ETH/USD shows a weakening bullish momentum, the RSI remains above 50, indicating potential buying activity. The next movements will be critical in determining whether Ethereum can maintain its climb or if a pullback is imminent, with $3,550 as the key resistance to watch.