Ethereum Price Gains Momentum, But Sustaining It Is Crucial

Ethereum's price struggled to break the $3,200 resistance barrier and subsequently fell. Currently, ETH is trying to bounce back but faces challenges around the $3,180 mark.

Key Takeaways

Ethereum encountered a downward correction below $3,200 and $3,180.
The price remains above $3,100 and the 100-hourly Simple Moving Average.
A breakout occurred above resistance at $3,125 on the ETH/USD hourly chart (data sourced from Kraken).
The price may rise further if it stays above the $3,080 level.

Ethereum Price Builds Momentum

Ethereum's Recovery Efforts

Ethereum's price could not maintain stability above the $3,200 mark and has dropped, similar to Bitcoin’s trend. The ETH price fell below $3,180 and $3,150, entering a temporary bearish phase.

It even dipped below $3,080, reaching a low of $3,050, from which it is now trying to recover. The price has risen above the 23.6% Fibonacci retracement level of the recent decline from the swing high of $3,308 to the low of $3,050. Additionally, there was a breakout from a contracting triangle with resistance at $3,125 on the hourly ETH/USD chart.

Currently, Ethereum is trading above $3,080 and the 100-hourly Simple Moving Average. If the bulls can prevent further losses below $3,080, a new upward attempt could occur. Immediate resistance is found near the $3,150 level.

Resistance Levels

The first significant resistance is at the $3,180 level, coinciding with the 50% Fibonacci retracement level of the recent decline from $3,308 to $3,050. Following that, the next major resistance level is near $3,220.

Ethereum Price
Source: ETHUSD on TradingView.com

Should the price move decisively above the $3,200 resistance, it could drive the price towards the $3,250 resistance level. A notable break beyond this region could open the door for more significant gains in the following days, potentially pushing Ether up to the $3,300 resistance zone or even $3,320 soon.

Potential for Another Drop in ETH?

If Ethereum does not manage to surpass the $3,180 resistance, it may start to decline again. The first support level on the downside is close to $3,110, while the initial major support is around the $3,080 zone.

A decisive move below the $3,080 support could push the price down towards the $3,050 level. Any further declines might see the price testing the $3,000 region.

Technical Indicators

Hourly MACD: The MACD for ETH/USD is gaining strength in the bullish zone.
Hourly RSI: The RSI for ETH/USD is currently above the 50 mark.
Major Support Level: $3,080
Major Resistance Level: $3,180