Ethereum Price Surges 10%, Significance of Closing Above $3,550
Ethereum’s price has witnessed a rally of over 10% as it begins a recovery from the $3,050 region. However, the digital asset is currently facing a hurdle in clearing the $3,550 resistance area.
The recovery wave for Ethereum commenced from the $3,050 zone, which was crucial for its upward movement. Currently, the price is trading above $3,350 and the 100-hourly Simple Moving Average, indicating a positive momentum.
One significant development is the break above a major bearish trend line with resistance at $3,400 on the hourly chart of ETH/USD. This breakout has further reinforced the positive sentiment for Ethereum.
The primary focus now lies in surpassing the $3,550 resistance zone. If the price manages to settle above this key level, it is likely to witness a continued rise. The next targets for Ethereum will be $3,675 and potentially even higher. A breakthrough at $3,820 could pave the way for a rally towards the $4,000 resistance level, with potential further gains towards $4,080.
However, failure to clear the $3,550 resistance could result in another downward spiral for Ethereum. The initial support on the downside is expected near the $3,380 level, followed by the $3,320 zone. A decisive move below $3,220 might bring the price closer to $3,150. Further losses may lead to a test of the $3,050 level.
When analyzing the technical indicators, the MACD for ETH/USD is losing momentum in the bullish zone, while the RSI has crossed above the 50 level, indicating a positive trend for Ethereum.
It is important to note that this article is provided solely for educational purposes and does not constitute financial advice. As with any investment, it is advised to conduct thorough research and consider the risks involved before making any investment decisions. The use of information from this article should be done entirely at one’s own risk.