Ethereum recently faced a sharp decline in value following Bitcoin‘s unexpected drop below $69,000, which left ETH trading below the crucial $3,550 mark, a level previously indicative of a positive trend. The current price of Ethereum hovers beneath $3,550 and the 100-hour Simple Moving Average, with a resistance zone forming near this level.
Ethereum’s Struggle at Key Resistance Levels
For Ethereum to maintain its recovery, it must breach the significant resistance zone around $3,600. Should it succeed in breaking through, the potential for accelerated growth is on the horizon. Yet, resistance persists with bearish activity near $3,650 and $3,680. Overcoming the resistance at $3,680 is particularly crucial as it could signal a further increase in Ethereum’s price.
In the event Ethereum’s price fails to ascend beyond the $3,600 mark, a negative trend may be triggered once again. The initial support lies at approximately $3,500, with more formidable support at $3,475. If these levels are broken, Ethereum could potentially face a decrease towards the $3,340 support point.
Recovery Dependent on Key Resistance Levels
Technical analysis indicates the hourly MACD for ETH/USD remains in a bullish phase, albeit losing some steam. The RSI has dipped below 50, hinting at a possible increase in selling pressure. Support is established at $3,500, contrasted by a resistance level pegged at $3,600.
Implications for the Reader
- Ethereum’s immediate resistance lies at the $3,630 mark; surpassing this could indicate positive momentum.
- A break below the support levels of $3,475 or $3,450 may lead to a further decline towards the $3,340 level.
- The hourly MACD shows bullish signs, suggesting a potential for recovery if selling pressure doesn’t intensify.
Despite the recent downturn, Ethereum has demonstrated resilience by testing and recovering from sub-$3,500 levels multiple times. This pattern could mean a quick rebound for the cryptocurrency, offering a silver lining for investors amidst the volatility.