Ethereum, a major force in the cryptocurrency market, has demonstrated a promising recovery, especially after breaking the $3,500 resistance level. This advancement suggests a potential continuation of its upward trajectory. Despite this progress, the future price path of Ethereum remains uncertain.
Ethereum’s Momentum Gathers Pace
The cryptocurrency’s rebound has been particularly strong above the $3,350 mark, signaling a solid foundation for further gains. With Ethereum now trading over $3,450 and above its 100-hour Simple Moving Average, the market is observing a bullish takeover.
Examining the hourly chart, Ethereum’s recent surge through a bullish flag pattern at the $3,480 level posits that further ascension is likely if it can overcome the $3,580 resistance.
Key Support and Resistance to Watch
For Ethereum to sustain its climb, holding onto crucial support levels is essential. Presently, the $3,500 mark serves as a notable foundation, with the zone between $3,350 and $3,250 offering additional reinforcement.
On the ascent, the cryptocurrency might face immediate resistance near $3,550, but a more significant challenge awaits at the $3,580 level. Breaching this barrier could propel Ethereum towards $3,670 and potentially higher targets like $3,800, and even the $4,000 mark; a prior test at the $4,080 threshold might prove necessary.
Downward Trend Scenarios for Ethereum
Should Ethereum fail to clear the $3,580 hurdle, the possibility of a downward correction emerges. Analysts speculate that initial short-term support might present itself around $3,410.
Primary support areas in the event of a downturn include the $3,320 region and the 50% Fibonacci retracement level from the recent climb. A descent past these supports could drag Ethereum’s price to $3,060 and, if losses extend, the $3,000 benchmark might be within reach. Currently, Ethereum’s hourly MACD indicates a bullish lean with the RSI above 50, yet it remains to be seen how these technical indicators will influence future pricing.