Residing comfortably above the support range of $3,400, Ethereum (ETH) holds the promise of recuperating its recent loss. However, to sustain and continue its upward trajectory, the cryptocurrency must primarily breach the $3,600 threshold in the near future.
Earlier, Ethereum was observed prolonging its downward slide, ultimately probing the support levels of $3,400. Despite this, the digital currency now trades over $3,500 and importantly, maintains a stance above the 100-hourly Simple Moving Average.
Moreover, a notable breach was observed above a bearish trend line that had persistently posed resistance at $3,500, as evidenced in the hourly charts of the ETH/USD pair (data obtained via Kraken). If Ethereum sustains above the $3,500 support, it may potentially gather bullish momentum.
Despite experiencing a drop beneath the $3,500 level, Ethereum surprisingly plummeted lower, even crossing below the $3,450 support, before receiving a vital boost from the bulls. The cryptocurrency’s lowest traded value was $3,408, from where it initiated a resurgence wave, mirroring Bitcoin’s recovery.
Ethereum then ascended above the $3,500 resistance wall, climbed further, and tested the 50% Fibonacci retracement level from the recent plunge from a high of $3,726 to a low of $3,408. Adjacent to this event, a breakout was observed from the bearish trend line previously inhibiting growth at $3,500 on the ETH/USD hourly chart.
Trading in close proximity to $3,500 and hinged to the 100-hourly Simple Moving Average, Ethereum is now eyeing immediate resistance at $3,600 or alternatively, at the 61.8% Fibonacci retracement level from its recent downward shift from $3,726 to $3,408.
The initial formidable resistance resides at the $3,650 level. The subsequent crucial resistance shelters at $3,725, above which, ETH price might probe the $3,780 level. The critical obstacle at $3,800 holds the potential to open gates to bullish momentum, causing Ethereum’s price to surge towards the $3,880 range. Surpassing a resistance move of $3,880 could potentially catapult Ethereum towards the formidable $4,000 barrier.
However, if Ethereum falters at the $3,600 resistance, it could trigger another decline. The initial support in this scenario sits near the $3,520 mark, followed by substantial support at the $3,500 range. Further, the $3,400 threshold could serve as the subsequent key support level. A decisive dive below the $3,400 support might pull the price towards $3,320. Any further decline could potentially drag ETH’s price to the $3,240 mark.
From a technical standpoint, the Moving Average Convergence Divergence (MACD) for ETH/USD portrays an increase in momentum within the bullish zone on an hourly chart. Concurrently, the Relative Strength Index (RSI) for ETH/USD assumes a position above the 50 mark. Additionally, the major support and resistance levels are maintained at $3,520 and $3,600, respectively.
