Ethereum climbed above $3,000 for the first time since its recent decline to $2,620, posting a recovery of more than 5% as technical indicators signal potential for additional gains. The second-largest cryptocurrency by market capitalization now faces key resistance levels that could determine whether the rally continues or stalls.
What Happened: Recovery Breaks Key Technical Level
Ethereum began its recovery wave after holding support above $2,850, pushing through multiple resistance zones including $2,880 and $2,950 before breaching the $3,000 threshold.
The price movement followed a similar pattern to Bitcoin, which also posted gains during the same period.
The cryptocurrency surged past the 61.8% Fibonacci retracement level of its downward move from a $3,165 swing high to the $2,620 low. A bullish trend line has formed with support at $2,880 on the hourly chart. Ethereum is currently trading above both the $3,000 mark and its 100-hourly Simple Moving Average, positioning above the 76.4% Fibonacci retracement level of the same downward move.
The next resistance zone sits near $3,120, followed by additional barriers at $3,150 and $3,165. A decisive break above $3,165 could propel Ethereum toward $3,220, with further upside potentially reaching $3,320 or $3,350 in the near term.
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Why It Matters: Technical Momentum Builds
Technical indicators suggest strengthening momentum for Ethereum.
The hourly MACD is gaining momentum in the bullish zone, while the RSI has moved above the 50 level, both pointing to continued buying pressure.
However, failure to clear the $3,150 resistance could trigger a fresh decline. Initial support on the downside sits at $2,980, with major support at $2,920. A drop below $2,920 could push Ethereum toward $2,840, with further losses potentially reaching the $2,800 region or lower support levels at $2,750 and $2,740.
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