Ethereum has recently experienced a decline in price, falling below the $3,500 level. However, it has found support above $3,400 and is now attempting to recover its losses. In order to continue its upward movement, Ethereum must surpass the critical resistance level at $3,600.
There are positive signs indicating a potential bullish momentum for Ethereum. The price is currently trading above the 100-hourly Simple Moving Average and has broken through a bearish trend line resistance at $3,500. These factors suggest that the cryptocurrency could gain traction if it maintains support above the $3,500 zone.
If Ethereum successfully clears the $3,600 resistance level, it could aim for higher targets. The first major resistance sits at $3,650, followed by $3,725 and $3,780. The key hurdle to overcome is $3,800, as a breakthrough above this level could generate significant bullish momentum. In such a scenario, the price might rise towards the $3,880 and $4,000 resistance levels.
However, if Ethereum fails to surpass the $3,600 resistance, it may face another decline. The initial support is around $3,520, followed by the major support zone near $3,500. If the price breaks below $3,500, it could potentially target the $3,400 and $3,320 levels, with further losses leading towards $3,240.
Technical indicators also show positive signs for Ethereum. The hourly MACD is gaining bullish momentum, while the hourly RSI is now above the 50 level.
This analysis is solely for educational purposes and does not constitute financial advice. It is essential to conduct your own research before making any investment decisions, as investing in cryptocurrencies carries inherent risks. Please use the provided information at your own discretion and risk.