Ethereum is facing a challenging path to recovery as it encounters strong resistance at the $3,420 level. Despite starting an upward correction from the $3,240 support zone, the price is currently trading below this resistance level and the 100-hourly Simple Moving Average. There is also a bearish trend line forming with resistance near $3,410.
To continue its upward momentum, Ethereum must surpass the hurdles at $3,420 and $3,450. If successful, it may move towards the $3,520 resistance, followed by key resistances at $3,550 and $3,620. Ultimately, a break above the $3,720 resistance zone could lead to significant gains for Ether.
However, should Ethereum fail to break through the $3,420 resistance, it could face another decline. The initial support levels are at $3,375 and $3,350, with a potential drop towards $3,280 and $3,240 if further losses occur.
In terms of technical indicators, the MACD for ETH/USD is showing signs of losing bullish momentum, while the RSI is currently above the 50 zone.
Overall, Ethereum’s price recovery faces several obstacles, including the strong resistance at $3,420. Traders and investors will closely monitor the response to these roadblocks to gain insight into the cryptocurrency’s future direction.