Ethereum Price Poised for Upside Break, Shifting Sentiment to Bullish
Ethereum price is showing signs of preparing for an upward breakout, potentially surpassing the $2,900 level. In order to gain further momentum, ETH must successfully settle above both $2,900 and $2,940 in the near term.
At present, Ethereum is establishing a strong base above the $2,860 support zone, a positive indication for potential bullish movements. However, the price is currently trading below both $2,950 and the 100-hourly Simple Moving Average.
Chart analysis reveals a significant bearish trend line forming with resistance at $2,905 on the hourly chart of ETH/USD. Furthermore, immediate resistance lies near the $2,900 level. This resistance coincides with the 23.6% Fib retracement level of the recent decline from the $2,992 swing high to the $2,860 low.
A breakthrough above this trend line could see the price climbing towards the $2,925 level and the 100-hourly Simple Moving Average. The first major resistance awaits at $2,940, or the 61.8% Fib retracement level of the recent decline. Subsequently, breaching the $3,000 level would propel the price towards testing the $3,050 resistance, with further gains taking Ethereum to the $3,150 resistance zone.
However, should ETH fail to surpass the $2,925 resistance, it may endure another decline. Initial support is seen around the $2,880 level, followed by the major support at $2,860. Further down, the $2,810 level awaits as the next support, with a clear drop below potentially pushing the price towards $2,740. Additional losses may see the price reaching the $2,650 level in the near term.
Observing the technical indicators, the hourly MACD for ETH/USD is displaying waning momentum within the bearish zone. The hourly RSI has also fallen below the 50 level, suggesting a weakening sentiment.
In conclusion, Ethereum’s price is on the verge of a potential upside break, which may shift sentiment towards a bullish outlook. However, it is crucial for ETH to break resistance levels and maintain positive momentum to sustain the anticipated upward trajectory.