Ethereum price has recently experienced a recovery wave from the $3,220 support level. The cryptocurrency is now showing signs of improvement and could potentially see a rise if it manages to surpass the $3,550 resistance mark.
Initially, Ethereum started to ascend above the $3,350 zone and is currently trading above $3,420 and the 100-hourly Simple Moving Average. On the hourly chart of ETH/USD, there is a bullish trend line forming with support at $3,425, indicating a positive outlook for the cryptocurrency. The pair may witness a significant increase if it successfully clears the $3,520 and $3,550 resistance levels.
Ethereum price managed to stay above the $3,220 support level before beginning its recovery journey. The cryptocurrency was able to surpass the $3,350 and $3,400 resistance levels and even crossed the $3,500 mark. However, the bears remained active below the $3,550 level, resulting in a peak at $3,534 before the price started consolidating its gains. The price corrected slightly below the 23.6% Fib retracement level of the recent wave, from the $3,226 swing low to the $3,534 high.
Currently, Ethereum is trading above $3,420 and the 100-hourly Simple Moving Average, indicating a bullish trend. The connecting bullish trend line with support at $3,425 on the hourly chart of ETH/USD suggests a positive momentum for the cryptocurrency. However, on the upside, the price is facing hindrances near the $3,520 level, with the main resistance forming near $3,550. A break above this resistance could propel the price towards the $3,650 resistance, with potential further gains towards $3,720 or even $3,800 in the future.
In the event that Ethereum fails to surpass the $3,550 resistance level, it may witness a decline. Initial support on the downside is expected near the $3,425 level and the trend line, followed by major support at $3,375. A breach below the $3,375 support could result in a downward movement towards the $3,320 support level, with the possibility of further losses towards the $3,220 support and ultimately the $3,110 level. It is important to keep an eye on the technical indicators, such as the MACD and RSI, to gauge the momentum of ETH/USD.
In conclusion, Ethereum price has shown signs of recovery and may continue to rise if it surpasses the $3,550 resistance level. However, a failure to do so could lead to a decline towards the support levels at $3,375, $3,320, and $3,220. Traders and investors should closely monitor the price movements and technical indicators to make informed decisions regarding their Ethereum holdings.
