Ethereum has recently initiated a small recovery following a decline that saw its price dip to approximately $2,920. The current trading dynamics indicate some upward movement; however, potential challenges are anticipated near the $3,240 resistance zone.
After failing to maintain pricing above the $3,250 level, Ethereum experienced further losses, mirroring trends seen in Bitcoin , and fell beneath critical support levels of $3,120 and $3,000. A significant break occurred below a key bullish trend line that previously offered support around $3,240 on the hourly ETH/usd chart. The asset even ventured below $2,950 before establishing a low at $2,920, where it has now begun its recovery. This revival has enabled Ethereum to surpass resistance levels of $3,000 and $3,050. Additionally, the price has crossed the halfway mark of the recent downturn from a peak of $3,335 to the bottom at $2,920.
Despite these gains, Ethereum faces significant barriers below the $3,200 and $3,220 levels. The price remains under the $3,200 level and the 100-hourly Simple Moving Average, while encountering further resistance near the $3,175 level, which aligns with the 61.8% Fibonacci retracement of the prior decline from $3,335 to $2,920. The immediate resistance is set at the $3,200 level, with a more pronounced hurdle forming at $3,240. A successful breach of this level could pave the way for Ethereum to test the $3,350 resistance and, potentially, see prices rise towards the $3,450 or even $3,500 range in the short term.
Conversely, should Ethereum struggle to overcome the $3,200 resistance, it risks entering another downward trend. Initial support levels are identified at $3,120 and $3,050, with a critical level near $3,000. If these supports fail, the price could retreat towards the $2,920 level, with the next significant support sitting at $2,880. Technical indicators suggest a slowing momentum in the bearish zone, while the relative strength index is positioned above the neutral 50 mark, hinting at a potential for further volatility ahead.
