Ethereum is currently experiencing a recovery phase, bouncing back from a significant support level at $3,220. After a period of consolidation, the cryptocurrency has managed to push above the $3,350 level, signaling positive momentum. Trading is now taking place above $3,420, accompanied by the 100-hourly Simple Moving Average, indicating a potential upward trend.
The price action suggests that Ethereum has successfully climbed beyond the $3,500 resistance level, although it encountered selling pressure near $3,550. After reaching a peak of $3,534, the price has since been stabilizing. A modest correction followed, as Ethereum slipped below the 23.6% Fibonacci retracement level from the recent movement between the swing low of $3,226 and the peak at $3,534. Currently, a bullish trend line with support resting at $3,425 is forming on the hourly ETH/usd chart.
Looking ahead, Ethereum faces significant resistance around the $3,550 level. A strong breakthrough past this point could catalyze further gains, potentially targeting the $3,650 resistance. If the price can overcome this hurdle, it may rally toward $3,720 or possibly approach the $3,800 level in the upcoming sessions.
Conversely, if Ethereum struggles to surpass the $3,550 barrier, a downward trend could emerge. Initial support appears near $3,425 along with the trend line, while further support exists at $3,375. Should the price fall below this level, it could descend towards the $3,320 support and potentially revisit the $3,220 level. The next key support area lies at $3,110, underscoring the importance of maintaining momentum above current support levels.
In summary, Ethereum ’s future trajectory hinges on its ability to break through key resistance levels, while bearish scenarios could unfold if support levels are breached.
