Ethereum (ETH) is showing promising signs of recovery, climbing above the $3,500 mark. However, the cryptocurrency faces a critical juncture, needing to overcome a significant resistance level to sustain its upward trajectory and potentially achieve further gains.
Ethereum Charts a Recovery Path
Following a period of stability above the $3,250 support, Ethereum embarked on a recovery wave, mirroring Bitcoin's recent movements. The price successfully broke past initial resistance points at $3,350 and $3,420, with bulls pushing it above the 61.8% Fibonacci retracement level of a previous downturn from $3,920 to $3,058. Currently, ETH is trading confidently above $3,550 and its 100-hourly Simple Moving Average, supported by a bullish trend line at $3,520 on the hourly chart against the USD.
The Crucial $3,650 Hurdle and Beyond
The immediate challenge for Ethereum lies in clearing the formidable $3,650 resistance zone. A decisive breakthrough above this level could ignite further bullish momentum, potentially driving the price towards the $3,710 mark, which aligns with the 76.4% Fib retracement level. Should ETH maintain its upward trajectory and conquer the $3,740 and $3,880 resistance areas, it could set its sights on reaching $3,920 or even $3,950 in the near term. Conversely, a failure to surpass $3,650 might trigger a fresh decline, with initial support expected around $3,540 and a major support sitting at $3,485. Sustained losses below this major support could see Ethereum retesting the $3,360, $3,260, or even lower levels at $3,200 and $3,180.
Technical Outlook
The hourly MACD for ETH/USD is currently exhibiting diminishing momentum within the bullish zone, while the Hourly RSI remains positioned above the 50 mark, suggesting that while bullish sentiment is present, it might be waning. Key Levels to Watch:
- Major Support Level: $3,485
- Major Resistance Level: $3,650
