Ethereum's Uphill Battle: Bulls Eye Recovery Amidst Stiff Resistance
Ethereum's price has recently experienced a significant setback, failing to maintain its position above the crucial $3,050 level and subsequently testing lows around $2,950. While bulls are now attempting to orchestrate a recovery, the path forward is fraught with challenges, as ETH encounters formidable overhead resistance that could dictate its near-term trajectory.
Recovery Bid Faces Critical Hurdles
Following a fresh decline that mirrored broader cryptocurrency market trends, Ethereum found a temporary floor at $2,941. This dip below $3,150 signaled entry into a bearish zone, with the price further retracting under $3,050 and even briefly touching below $3,000. Despite a modest rebound, pushing above the 50% Fibonacci retracement level of the recent $3,217 high to $2,941 low, ETH continues to trade beneath $3,120 and its 100-hourly Simple Moving Average. A key bearish trend line on the hourly chart, also situated around $3,150, presents a significant resistance barrier. Should a stronger recovery emerge, further resistance points are identified near $3,220 and $3,250. A decisive breach above $3,250 could propel Ethereum towards $3,320, potentially leading to additional gains towards the $3,450 or even $3,500 mark.
Downside Risks and Key Support Levels
However, the current market sentiment remains fragile. If Ethereum bulls fail to overcome the $3,150 resistance, the cryptocurrency could face another downward correction. Immediate support on the downside is anticipated around $3,065, with the first major support level resting near $3,020. A sustained move below this $3,020 zone could force the price to retest $2,950. In a more pronounced bearish scenario, further losses might push Ethereum towards the $2,880 region, with subsequent critical supports positioned at $2,750 and $2,740. Technical indicators offer mixed signals: the Hourly MACD is currently losing bearish momentum, while the Hourly RSI has managed to climb above the 50 zone, suggesting a delicate balance in the ongoing price action.
