In the latest developments in the cryptocurrency market, Ethereum, the second-largest cryptocurrency by market cap, has entered a consolidation phase near the $3,000 zone. Experts are watching the digital currency’s movements closely, predicting a slow but steady rise that may potentially usher in a fresh surge above the $3,220 mark.
Ethereum, commonly referred to as ETH, is currently facing obstacles near the $3,220 level. The price, however, is trading above $3,150 and the 100-hourly Simple Moving Average (SMA), indicating a positive momentum. In an encouraging development, there was a break above a crucial bearish trend line with resistance at $3,130 on the hourly chart of ETH/USD. This data was obtained via Kraken, a popular cryptocurrency exchange platform.
The ETH/USD pair could potentially initiate a fresh increase if it manages to clear the $3,220 resistance zone. This would indicate a strong move in favor of the bulls, potentially leading to substantial gains for Ethereum holders.
Although Ethereum’s price has remained supported above the $3,000 level, mirroring Bitcoin’s recent performance, ETH has managed to form a base and move above the $3,120 and $3,150 resistance levels. The pair even cleared the $3,200 level and tested $3,220. A high was formed at $3,224 before there was a minor pullback.
The price dipped slightly below the 23.6% Fibonacci retracement level of the upward move from the $3,051 swing low to the $3,224 high. Currently, the Ethereum price is trading above $3,150 and the 100-hourly Simple Moving Average. On the upside, the price seems to be facing hurdles near the $3,200 level.
The first significant resistance is near the $3,220 level. The main resistance is now forming near $3,250. A clear move above the $3,250 resistance might send the price toward the $3,320 resistance. If it manages to break above the $3,320 resistance, we might see further gains in the coming sessions. In such a scenario, Ether could rise toward the $3,450 resistance zone.
However, if Ethereum fails to clear the $3,220 resistance, it could initiate another decline. The initial support on the downside is near the $3,140 level, followed by major support near the $3,050 zone. If the price slips below the $3,050 support, it might push toward $3,000. Any further losses might send the price toward the $2,940 support level in the short term, with the next key support sitting at $2,880.
Hourly MACD indicators show that the MACD for ETH/USD is gaining momentum in the bullish zone, while the RSI for ETH/USD is now above the 50 zone. This indicates that the market sentiment is currently bullish.
In conclusion, Ethereum’s current situation presents a complex but potentially favorable picture for investors and traders. The coming days will be critical in determining whether Ethereum can overcome its resistance and reach new highs or if it will fall back to lower support levels.
