Ethereum has embarked on a modest recovery, bouncing back from the $3,160 level and aiming to establish stability above the $3,200 threshold. However, the cryptocurrency continues to encounter resistance, particularly at the $3,320 level. If Ethereum remains trapped below this critical point, it may face further declines in the near future.
After beginning its recovery at $3,160, Ethereum climbed past the $3,200 and $3,220 levels, even surpassing the 23.6% Fibonacci retracement of the recent downward trend originating from the swing high of $3,743. Despite this upward movement, ETH is currently positioned below both the $3,320 resistance and the 100-hourly Simple Moving Average. It faces obstacles around the $3,300 level, which is hindering its attempts to break into a more robust upward momentum.
The immediate resistance for Ethereum is identified at the $3,320 level, while a more significant barrier exists at $3,450, coinciding with the 50% Fibonacci retracement of the aforementioned decline. Should Ethereum manage to exceed this resistance, there is potential for the price to move towards $3,500 and subsequently towards $3,650 or even $3,720.
Conversely, if Ethereum is unable to surpass the $3,320 resistance, it could trigger a downward trend. Initial support is anticipated at around $3,250, backed by a supporting trend line. Should the price dip below $3,220, it may test the $3,160 support level. Further declines could see Ethereum approach $3,050, with a significant support level at $3,000.
Technical indicators show that the market’s momentum is currently leaning bearish, with the hourly MACD reflecting a strengthening downward trend and the Relative Strength Index hovering below the neutral zone. The critical levels to monitor are $3,220 for support and $3,320 for resistance as Ethereum navigates its current market challenges.
