Ethereum Price Faces Recovery Dilemma: Roadblocks Ahead
Ethereum, the leader of blockchain technology, has been showing a choppy trend in price recently. Starting from the $3,230 area, Ethereum price has set off a wave of recovery and successfully climbed above $3,350. However, when the price touched $3,420, it encountered strong resistance.
Starting from the $3,240 support area, Ethereum attempted an upward correction. But the current price is still below $3,420 and has not been able to surpass the 100 hourly simple moving average. On the hourly chart of ETH/USD, a key bearish trend line can be clearly seen with resistance near $3,410. If Ethereum wants to continue to rise, it must first break through the two key resistance levels of $3,420 and $3,450.
Ethereum's price trend is clearly seeking recovery. After touching the $3,240 support area, it experienced a recovery wave like Bitcoin. The price rose from the $3,300 and $3,320 levels. The bulls pushed the price above $3,350 and even broke through the 61.8% Fibonacci retracement level of the decline from the high of $3,518 to the low of $3,230. But as mentioned earlier, the price encountered strong resistance when approaching the $3,420 area.
From the technical indicators, Ethereum's MACD is losing momentum in the bull market area, while the RSI is above the 50 area, showing that there is still some buying power in the market. However, to confirm the further trend of the market, we still need to observe whether the price can break through the aforementioned key resistance level.
If Ethereum fails to successfully break through the $3,420 resistance level, it may decline again. The initial downside support is located near $3,375, while the first major support area is around $3,350. If the price clearly breaks below the $3,350 support, it may fall further to $3,280 or even lower.
