Ethereum’s Recovery and Performance
Have you noticed how Ethereum has started a recovery after the bulls showed up near the $3,365 zone? The price is currently trading above $3,550 and the 100-hourly Simple Moving Average. In fact, there was a break above a key bearish trend line with resistance near $3,550 on the hourly chart of ETH/USD (data feed via Kraken). This means that the pair could potentially extend gains if it manages to stay above the $3,550 pivot level.
Ethereum Price Outperforms Bitcoin
Ethereum’s price recently suffered losses below $3,550 and $3,500 resistance levels. However, ETH bulls stood strong near the $3,350 zone, leading to a low formation at $3,364. Subsequently, the price initiated a fresh increase, outperforming Bitcoin in the process.
- There was a move above the $3,450 and $3,550 resistance levels.
- A key bearish trend line with resistance near $3,550 was broken on the hourly chart of ETH/USD.
- The pair even surpassed the $3,600 level and tested the $3,650 resistance.
After reaching a high at $3,649, the price experienced a pullback below $3,620. Additionally, it declined below the $3,600 support level and the 23.6% Fib retracement level of the upward move from the $3,364 swing low to the $3,649 high. Currently, Ethereum is trading above $3,550 and the 100-hourly Simple Moving Average, potentially facing resistance near the $3,620 level in the event of a fresh increase.
The primary resistance lies near the $3,650 level, with an upside break above that potentially pushing the price higher. Should this occur, the next crucial resistance point is at $3,720, above which the price may gain traction and rise towards the $3,800 level. A decisive move above $3,800 could propel Ether towards the $3,880 resistance, and further advances might lead it to the $3,950 resistance zone.
Are Dips Limited In ETH?
However, if Ethereum struggles to clear the $3,620 resistance level, it could face further downward movement. The initial support on the downside is around $3,550, followed by the first major support at $3,500 and the 50% Fib retracement level of the upward move from the $3,364 swing low to the $3,649 high. A clear breach of the $3,500 support could potentially drive the price towards $3,420, with additional losses guiding it towards the $3,365 level in the near future.
When looking at the technical indicators:
- Hourly MACD – The MACD for ETH/USD is currently losing momentum in the bullish zone.
- Hourly RSI – The RSI for ETH/USD is now hovering near the 50 zone.
Key levels to watch out for are:
- Major Support Level – $3,550
- Major Resistance Level – $3,650
Hot Take: Stay Alert and Watch for Key Levels
As an attentive investor, it’s essential to keep an eye on Ethereum’s price action, especially given its recent recovery and outperformance compared to Bitcoin. Ensure that you monitor the key resistance levels, such as $3,620 and $3,650, and the support levels at $3,550 and $3,500. By staying vigilant and informed, you can make well-informed decisions regarding your Ethereum holdings.
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