Ethereum Bulls Face Critical Juncture: Can Momentum Return Above Key Levels?
Ethereum has embarked on a recovery journey, climbing above the $4,300 mark, but the popular altcoin is struggling to gather significant bullish momentum. As it navigates crucial resistance levels, the coming sessions will determine if ETH can maintain its upward trajectory or if further declines are on the horizon.
Ethereum Price Recovery Faces Significant Hurdles
Following the formation of a base above the $4,220 zone, Ethereum's price initiated a recovery wave, mirroring Bitcoin's upward movement. The cryptocurrency managed to push past the $4,300 and $4,350 resistance levels, but a substantial challenge emerged near the $4,400 threshold. Currently, ETH is trading below $4,400 and the 100-hourly Simple Moving Average, signaling a persistent struggle for buyers. A notable bearish trend line is also forming on the hourly chart with resistance at $4,370, adding to the immediate hurdles. For a sustained rally, ETH bulls must decisively breach the $4,450 level. The recent low was established at $4,269, and the price is currently consolidating these losses. A minor upside correction occurred above the 23.6% Fibonacci retracement level of the recent decline from the $4,488 swing high to the $4,269 low, yet the path upward remains steep. If Ethereum manages to close above the $4,450 resistance, it could potentially trigger a more significant increase, targeting the $4,500 resistance, and possibly extending gains towards the $4,550 or even $4,620 in the near term.
Downside Risks and Critical Support Zones
Conversely, should Ethereum fail to overcome the $4,450 resistance, it risks initiating a fresh downward movement. Immediate downside support is anticipated around the $4,280 level. The first major support lies near the $4,250 zone. A clear breakdown below this critical $4,250 support could accelerate selling pressure, pushing the price towards the $4,215 mark. Further losses could see ETH testing the $4,160 support level, with the next significant support positioned at $4,120. Technical indicators reflect the current indecision; the Hourly MACD for ETH/USD is showing signs of gaining momentum within the bearish zone, while the Hourly Relative Strength Index (RSI) remains below the 50 level, reinforcing the cautious outlook for the short term. Technical Indicators:
- Hourly MACD: Gaining momentum in the bearish zone.
- Hourly RSI: Currently below the 50 zone.
- Major Support Level: $4,215
- Major Resistance Level: $4,450
