Ethereum Eyes Upside Break as Recovery Phase Gathers Momentum Ethereum (ETH) is showing promising signs of recovery, having bounced back from the $3,700 mark and pushing higher. The digital asset is currently navigating crucial resistance levels that, if successfully breached, could confirm a stronger upward trajectory and solidify its recovery phase in the short term.
Key Resistance and Bullish Outlook
After initiating a recovery wave from the $3,710 zone, Ethereum successfully surpassed initial hurdles at $3,800 and $3,820. Despite a brief spike above $3,880, strong bearish activity emerged near the 50% Fibonacci retracement level of the recent downward move from $4,110 to $3,708. A significant bearish trend line has also formed with resistance near $3,900 on the hourly chart. Should ETH manage a sustained close above this $3,900 barrier and the subsequent $3,955 resistance (which aligns with the 61.8% Fib retracement), it could pave the way for a rally towards the $4,020 and even $4,120 levels. A decisive breakout above $4,120 is anticipated to fuel further gains, potentially reaching $4,150 or $4,165 in the near future. The hourly Relative Strength Index (RSI) is currently hovering above the 50 mark, indicating favorable momentum for the bulls.
Downside Risks and Support Levels
Conversely, a failure by Ethereum to overcome the $3,900 resistance could trigger a fresh wave of declines. Immediate downside support is located near $3,820, with the first major support resting at the $3,800 zone. A break below this critical $3,800 support level could expose ETH to further losses, potentially driving the price down towards $3,720, and subsequently to $3,650, with the next key support at $3,620. Traders should note that the hourly MACD is currently losing bullish momentum, suggesting a cautious approach as the market navigates these pivotal price points.
