Ethereum’s price recovery is facing potential obstacles that could hinder its upside continuation. After surpassing the $3,120 zone, ETH struggled to overcome the $3,220 resistance and is now trimming its gains.
The price is currently trading below $3,120 as well as the 100-hourly Simple Moving Average. Additionally, there was a break below a significant bullish trend line with support at $3,120. To initiate another increase towards $3,220, ETH must remain above the $3,020 support.
ETH initially climbed above the $3,150 and $3,200 levels, following a similar pattern to Bitcoin. However, it encountered resistance at the $3,220 zone and started a downward correction. The bears pushed the price below $3,120, and it even broke the major bullish trend line.
Currently, Ethereum is consolidating its losses and is positioned below both $3,120 and the 100-hourly Simple Moving Average. The immediate resistance lies near $3,070 or the 23.6% Fibonacci retracement level. Further up, the first substantial resistance sits at $3,120 or the 50% Fibonacci retracement level. If the bulls manage to surpass $3,220, the price could potentially reach $3,350 and even the $3,500 resistance zone.
However, if Ethereum fails to clear the $3,120 resistance, it may experience another decline. Initial support can be found at the $3,025 level, followed by a major support zone near $3,000. The main support is situated at approximately $2,950, and a clear move below this level might lead to a price drop towards $2,820. Further losses could push the price down to around $2,650 in the near future.
It is important to note that the MACD for ETH/USD is losing momentum in the bullish zone, and the RSI has dropped below the 50 level on the hourly chart.
To conclude, Ethereum’s price recovery is at risk due to the challenges it faces in surpassing key resistance levels. Traders and investors should conduct their own research and be aware of the potential risks associated with investing in cryptocurrencies.