Ethereum Price Approaches Crucial $3,000 Test, Recovery Momentum at a Crossroads

Ethereum's price has begun a recovery trend after exceeding the $2,850 mark. However, it faces significant resistance near the $3,000 threshold and could be poised for a decline shortly.

Key Takeaways

Ethereum's price has risen above $2,850, buoyed by recent bullish momentum.
A critical bearish trend line exists at $2,970 on the hourly ETH/USD chart.
If the price drops below the $2,840 level, further declines could be expected.

Ethereum Price Pulls Back Hard

Ethereum Price Encounters Resistance

Ethereum successfully stayed above the $2,650 mark, initiating a recovery movement similar to Bitcoin's recent performance. The price climbed past the $2,740 and $2,800 levels, signaling bullish activity.

The bulls have propelled the price above the 50% Fibonacci retracement level of the decline from the $3,058 swing high to the $2,620 low. Nevertheless, bearish pressure remains evident just below the $3,000 resistance area. The hourly ETH/USD chart shows the formation of a key bearish trend line, with resistance observed at $2,970.

Currently, Ethereum is trading above $2,840 and the 100-hour Simple Moving Average. Should the upward trend persist, the price could encounter resistance around the $2,950 level, as well as the 76.4% Fibonacci retracement level noted in the price decline mentioned earlier.

Ethereum Price Source: ETHUSD on TradingView.com

The next significant resistance lies close to $2,970, and the first major resistance is at the pivotal $3,000 level. A decisive break above this mark may push prices toward the $3,050 region. Should it climb beyond $3,050, Ethereum could see further increases, possibly targeting resistance zones at $3,120 or even $3,250 in the coming days.

Potential for Another Decline in ETH?

If Ethereum is unable to break through the $2,950 resistance, it might initiate a fresh downturn. The first line of support lies at roughly $2,840, with a crucial support level around the $2,780 mark.

If the price drops below $2,780, it could further descend toward the $2,740 support area. Any additional losses could lead Ethereum toward the $2,650 region shortly. The next key support levels are identified at $2,550 and $2,500.

Technical Indicators

Hourly MACD: The MACD for ETH/USD is currently losing momentum but remains in the bullish zone.
Hourly RSI: The RSI for ETH/USD is positioned above the 50 threshold.
Major Support Level: $2,800
Major Resistance Level: $2,950