Ethereum price started a minor recovery wave after it dropped to the $2,920 zone. ETH is rising and might face hurdles near the $3,240 zone.
- Ethereum started a minor recovery wave from the $2,920 zone.
- The price is trading below $3,250 and the 100-hourly Simple Moving Average.
- There was a break below a connecting bullish trend line with support at $3,240 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could struggle to start a fresh increase above the $3,200 resistance level.
Ethereum Price Attempts Recovery
The Ethereum price has faced challenges in maintaining upward momentum, similar to its counterpart Bitcoin. After failing to settle above the $3,250 mark, ETH experienced a decline, dropping below significant support levels at $3,120 and $3,000. A notable break occurred below a connecting bullish trend line with support at $3,240 on the hourly chart of ETH/USD.
Recently, Ethereum dipped to a low of $2,920 but is now showing signs of a recovery wave. The price has managed to move above resistance levels at $3,000 and $3,050, clearing the 50% Fib retracement level of the downward move from the $3,335 swing high to the $2,920 low.
Despite this recovery attempt, the bearish sentiment remains strong below the $3,200 and $3,220 levels. Currently, Ethereum is trading beneath $3,200 and the 100-hourly Simple Moving Average.
On the upper side, ETH faces hurdles around the $3,175 level, which aligns with the 61.8% Fib retracement level of the previous downward movement. The primary resistance to watch is situated near the $3,200 threshold.
Looking ahead, if Ethereum can decisively move beyond the $3,240 resistance level, we might witness prices aiming for the $3,350 barrier. A successful breach above this critical level could trigger more significant gains, propelling Ethereum toward a resistance zone around $3,450 or even $3,500 in the near term.
Potential for Another Decline in ETH?
On the contrary, if Ethereum continues to struggle in overcoming the $3,200 resistance, another decline may be likely. Initial support is positioned at $3,120, with the first major support level resting around $3,050.
A drop below the $3,050 support could further escalate selling pressure, leading to potential retests of the $3,000 support. Additional losses might push prices back to the $2,920 level, with the next significant support level at $2,880.
Technical Indicators
- Hourly MACD – The MACD for ETH/USD is losing momentum in the bearish zone.
- Hourly RSI – The RSI for ETH/USD is now above the 50 zone.
- Major Support Level – $3,120
- Major Resistance Level – $3,240
