In a swiftly changing financial environment, Ethereum once again found itself navigating tumultuous waters as its price saw another downturn. After bracing the $3,365 support zone, investors are closely watching to determine if Ethereum can muster a robust recovery and begin a fresh climb toward the $3,700 mark – provided it manages to remain above the $3,365 threshold.
At present, Ethereum remains poised on the crucial cusp of the $3,365 support zone. Its price has been treading below the $3,550 mark as well as below the 100-hourly Simple Moving Average, leashing its stride. Concurrently, a connecting bearish trend line, with resistance hovering around $3,500, seems to be crystallizing on the hourly chart of ETH/USD, adding an additional layer of challenge to the cryptocurrency.
However, market observers are speculating a potential rise on the cards, if Ethereum can carve out a double-bottom pattern and ascend towards the considerably resistant $3,700 line.
Ethereum initially struggled to pin down a consistent upward trajectory above the $3,580 and $3,650 resistance levels. In a ripple effect echoic of Bitcoin’s troubles, Ethereum’s price spiraled down beneath the $3,500 support mark, experiencing a sharp drop to take a breather below $3,420. However, the bulls countered swiftly, with renewed activity being noted near the $3,350 line.
From here, Ethereum plotted a low near the $3,350 level, and it’s currently showing signs of resurfacing. It managed to push past the $3,380 and $3,400 resistance levels and break free of the 23.6% Fib retracement level from the downward plunge – which originated at the $3,649 swing high and bottomed out at a $3,350 low.
As Ethereum now struggles below the $3,550 mark, it appears to evoke prospects of a double-bottom pattern, which could potentially fuel an upward push toward the $3,700 resistance. Amid a fresh surge, the price is likely to encounter resistance around $3,460.
Upcoming hurdles include a significant resistance around the $3,500 level or the 50% Fib retracement level – marking the downward move from a $3,649 swing high to a $3,350 low. Ethereum would also be grappling with the connective bearish trend line that’s presently forming with resistance near $3,500.
Should Ethereum successfully breach the $3,500 resistance, it could trigger an upward spiral of its price. Following this, the subsequent key resistance lies at the $3,580 level, zooming past which could catalyze traction and a potential leap toward the $3,650 level.
Beyond the $3,650 threshold, Ethereum could surge towards the $3,720 resistance. Further growth could even position Ether within arm’s reach of the $3,800 resistance zone.
The reverse side of the coin, however, paints a grim picture – if Ethereum fails to clear the $3,500 resistance, it might find itself on a downward path once more. Initial support, in such a scenario, lies near $3,380, but the primary fortress of support stands at $3,350.
A decisive slide below this $3,350 support line could compel the price to plummet toward a $3,250 low. Further loss may ultimately push the price to seek support at the $3,120 level in the near term.
As for technical indicators, the dynamics highlight the Hourly MACD losing momentum within the bearish zone for ETH/USD. The Hourly RSI also underscores a similar narrative with an indication of falling beneath the 50 zone. Amid these fluctuations, the major support and resistance levels presently stand at $3,350 and $3,500, respectively.
