Ethereum has experienced a significant drop of over 10%, causing concerns among investors. However, the cryptocurrency has managed to reclaim the $3,000 mark, giving hope for a potential upward movement in the future. Despite this recovery, there are several obstacles that Ethereum must overcome, with the primary hurdle being the $3,200 level.
Currently, Ethereum is striving to initiate a recovery wave after finding support around the $2,550 zone. However, the cryptocurrency is still trading below the 100-hourly Simple Moving Average and is facing resistance below the $3,250 level. On the hourly chart, there is a rising channel forming with resistance at $3,200.
In order for Ethereum to gain bullish momentum, it must maintain its position above the crucial $3,000 support zone. If successful, the price could potentially test the resistance levels at $3,250, $3,300, and $3,360. Ultimately, breaking the $3,500 barrier could propel Ethereum into a more bullish territory, potentially leading to a rise towards the $3,620 and $3,750 resistances.
However, if Ethereum fails to clear the $3,250 resistance, it may encounter another decline. The initial support on the downside is near $3,080, followed by the major support at $3,000. If further losses occur, Ethereum could drop towards the $2,880 and $2,750 levels.
Technical indicators currently show mixed signals, with the MACD losing momentum in the bearish zone, while the RSI hovers above the 50 level.
In conclusion, Ethereum has managed to reclaim $3,000 but still faces numerous challenges ahead. The cryptocurrency must overcome resistance levels and maintain support to continue its upward trajectory. Investors will closely monitor the market to determine if Ethereum can sustain its recovery in the coming days.