Ethereum, the second largest cryptocurrency by market capitalization, is making a comeback. After its price took a tumble and found support close to the $2,940 mark, a steady uptrend began. Experts say that if the digital currency can clear both the $3,055 and $3,080 resistance levels, it could gain solid bullish momentum.
Ethereum extended its losses below the crucial mark of $3,000, mirroring bitcoin’s slide. But amid this fallout, a triumphant moment arose when bulls entered the fray. Finding a firm footing near the $2,940 mark, Ethereum sparked a recovery wave with a marginal low of $2,936 acting as the springboard for a bullish price correction.
This uptick, however, is more than a random increase; it’s a significant movement where the price cleared the 23.6% Fibonacci retracement level of the earlier downtrend starting from the $3,218 peak to the low $2,936 point. A potent sign of Ethereum’s change in fortune was breaking through the major bearish trend line with resistance at $2,990.
As of now, Ethereum is changing hands near the $3,030 mark, flirting closely with that critical benchmark, the 100-hourly Simple Moving Average (SMA). The first hurdle the digital currency must jump is $3,040, the immediate resistance, which coincides with the 100-hourly SMA. But the real test could be the $3,080 level, aka the 50% Fibonacci retracement level of the earlier downtrend.
If Ethereum can conquer the $3,150 resistance, a potential price uptrend could land them to the previous high of $3,220. A clear victory over this level could lead the digital token to test the $3,350 mark, with possibilities of surging towards the $3,550 resistance.
Things would be far from rosy should Ethereum falter in clearing the $3,080 resistance. In such a case, it may trigger yet another price decline. The safeguard in this scenario is the major support level at $2,935. If that fails, the next defense line sits at $2,880, and a breach might push Ethereum’s price into a risky zone towards $2,720. And if this isn’t alarming enough, further losses could potentially lead the digital coin to plummet towards the $2,650 mark in the near future.
Technical indicators reflect a cautiously optimistic view. The Moving Average Convergence Divergence (MACD) for Ethereum/USD is rallying up momentum in the bullish zone. In the meantime, the Relative Strength Index (RSI) has surpassed 50, indicating a bullish trend.
Only time will tell if Ethereum can capitalize on its source of strength, the $2,935 support level, and steer past the looming $3,080 resistance. Whether it’s poised for a bull-run or a bearish spiral, it’s a reality only the market’s invisible hand can dictate.
