Ethereum has initiated a new recovery phase, climbing beyond the $3,400 level. The cryptocurrency is currently consolidating its gains with aspirations to breach the $3,500 resistance.
After establishing stability above the $3,320 threshold, Ethereum ’s price took off, mirroring upward movements seen in Bitcoin . The digital asset successfully navigated past the key resistance levels of $3,350 and $3,420. The bullish momentum allowed Ethereum to exceed the $3,450 resistance, setting the stage for a potential rise to the pivotal $3,500 level. Following a peak at $3,502, the price is now in a consolidation phase, showcasing minor fluctuations beneath the 23.6% Fibonacci retracement level of the upward trajectory from a low of $3,310.
Currently, Ethereum is trading above $3,400 and also sits above the 100-hourly Simple Moving Average. An important bullish trend line has emerged, providing support at the $3,420 level. However, as the price advances, it encounters challenges near the $3,480 level. The immediate resistance is at $3,500, with a more significant barrier positioned near $3,550. A decisive breakthrough past the $3,550 level could propel Ethereum towards resistance at $3,650, potentially leading to further gains.
Conversely, should Ethereum struggle to overcome the $3,500 barrier, a downturn could occur. Initial support is anticipated around the $3,420 level, correlated with the trend line, while primary support is notably located at $3,400, corresponding to the 50% Fibonacci retracement level. A sustained drop below this support could push the price down to $3,350, with further declines possibly targeting $3,280, and the next critical support level resting at $3,220.
Additionally, technical indicators show promising signs, with the MACD reflecting positive momentum and the RSI remaining above the neutral 50 mark, suggesting a favorable outlook for the immediate future.
