Ethereum price has initiated a recovery wave from the $3,220 support level. Currently, ETH is in the process of recouping some losses and has the potential to rise further if it can break through the $3,550 resistance.
Ethereum began a fresh upward movement above the $3,350 zone. It is currently trading above $3,420 and the 100 – hourly Simple Moving Average. On the hourly ETH/USD chart (data from Kraken), a connecting bullish trend line is taking shape, with support at $3,425. If the pair manages to surpass the $3,520 and $3,550 resistance levels, it could start a substantial increase.
Starting from a stable position above $3,220, Ethereum, similar to Bitcoin, initiated a recovery. It successfully climbed above the $3,350 and $3,400 resistance levels and even cleared the $3,500 resistance. However, bears became active below the $3,550 level. After reaching a high of $3,534, the price is now consolidating its gains. It has corrected slightly below the 23.6% Fib retracement level of the recent upward wave from the $3,226 swing low to the $3,534 high.
On the upside, the price is encountering obstacles near the $3,520 level. The first major resistance is around the $3,540 level, and the main resistance is forming near $3,550. A decisive breakthrough above the $3,550 resistance could send the price towards the $3,650 resistance. If it can break above the $3,650 resistance, more gains could follow in the upcoming trading sessions. In such a scenario, Ether could climb towards the $3,720 resistance zone or even reach $3,800.
If Ethereum fails to overcome the $3,550 resistance, it may continue its downward movement. The initial support on the downside is near the $3,425 level and the trend line. The first major support is around the $3,375 zone.
A clear downward move below the $3,375 support could push the price towards the $3,320 support. Further losses could potentially send the price towards the $3,220 support level in the near term. The next crucial support is at $3,110.
Related topics:
Cardano’s Hydra: Poised to Rival Ethereum’s Throne?
Bitcoin ETFs Suffer $680m Outflows as BTC Slips Below $96k, Ethereum ETFs Also Impacted
Ethereum Spot ETFs See $145m Net Inflow, Signaling Rising Institutional Interest
