Ethereum has initiated a notable recovery, trading above the $3,550 level and showing potential for further gains. Currently, the price is stable above $3,620 and exceeds the 100-hourly Simple Moving Average, suggesting bullish momentum. A supportive bullish trend line has formed at $3,620, making it a crucial level for potential upward movement.
The price action reflects a robust increase from the recent low of $3,569, with the market managing to break past resistance levels around $3,550 and $3,620. This upward trajectory culminated in a peak at $3,694, after which Ethereum has been consolidating its gains. It is currently positioned above the 23.6% Fibonacci retracement level, indicating a stable recovery with support from various technical indicators.
While the price is sustained above $3,650, it encounters resistance just below the $3,700 level, with a more significant hurdle at $3,720 and the main resistance forming near $3,800. Should the price achieve a decisive break above $3,800, it could rally towards $3,880, potentially leading to a target near $3,920 or even $4,000 in the near term.
However, if Ethereum cannot surpass the resistance at $3,700, it may be at risk of a downward correction. In such a scenario, initial support is identified at the $3,620 level, closely following the trend line. The first major support level lies around $3,550; a significant drop below this could see the price testing the $3,500 support and potentially further declines towards $3,420 and $3,350.
Technical indicators support the current bullish outlook, with the MACD showing positive momentum and the RSI positioned above the 50 level, indicating positive momentum in trading. As the market continues to watch these key levels, the outlook remains cautious yet optimistic for Ethereum ’s price direction.
