Ethereum recently initiated a notable recovery, rising above the $2,650 mark after a significant decline. Although it is showing encouraging signs, ETH needs to clear certain resistance levels to sustain its upward trajectory.
The cryptocurrency embarked on an upward trend following a sharp drop below $2,500, where it notably lagged behind Bitcoin. After testing the $2,120 threshold, it experienced a rebound, surpassing the $2,550 and $2,650 resistance barriers. Moreover, Ethereum broke through a short-term descending channel on the hourly ETH/USD chart, which was met with resistance at $2,780.
Currently, Ethereum is trading below $2,850 and sits beneath its 100-hour Simple Moving Average. Resistance looms at around $2,840 and the 100-hourly SMA. The first significant resistance to overcome is at $2,880, with a more formidable challenge at $2,920, aligning with the 61.8% Fibonacci retracement from the $3,400 peak to the $2,120 trough. Breaking past $2,920 could propel the price towards $3,000.
Should Ethereum break above the $3,000 resistance, further gains could be anticipated, potentially reaching the $3,120 to $3,250 range in the short term.
Conversely, failure to surpass the $2,840 resistance might trigger a downturn. Initial support is found near $2,700, with a more robust base at $2,640. A decisive move below $2,640 could send Ethereum down to $2,550, with additional losses taking it to $2,500.
Disclaimer: The information provided in this article is for educational purposes only and should not be considered financial or legal advice. Always conduct your own research or consult a professional when dealing with cryptocurrency assets.