Recently, Ethereum price saw a recovery wave that pushed it above the $2,920 resistance level. This was certainly a positive development for ETH, especially as it climbed above $3,000. However, it seems that Ethereum is trailing behind Bitcoin and may face challenges in surpassing the $3,050 resistance.
Technical Analysis
Looking at the hourly chart of ETH/USD, we can see that there was a break above a key bearish trend line with resistance at $2,900. This breakout helped propel the price above $2,950 and the 100-hourly Simple Moving Average. Despite these positive movements, there is potential for the pair to struggle in clearing the $3,040 and $3,050 resistance levels.
Even though Ethereum price remained stable above the $2,860 support zone, it is crucial to acknowledge that ETH gained less than Bitcoin. The bulls managed to pump the price above $2,950 and $3,000, forming a new weekly high at $3,039. As the price consolidates gains, it is important to keep an eye on the support and resistance levels. Immediate resistance is near the $3,040 level, with the first major resistance sitting at $3,050.
Potential Scenarios
If Ethereum manages to break above the $3,050 resistance, there is a possibility for the price to surge further. The next key resistance levels to monitor include $3,150, $3,220, and even $3,350. On the flip side, if ETH fails to clear the $3,050 resistance, we might see a downside correction. The initial support near the $3,000 level will be crucial, followed by the $2,950 zone and the $2,930 level.
Taking a closer look at the technical indicators, we can see that the hourly MACD for ETH/USD is losing momentum in the bullish zone. The hourly RSI, on the other hand, is now above the 50 level. These indicators provide valuable insights into the current market sentiment and potential price movements for Ethereum.
Ethereum price has experienced both positive and negative movements in recent times. While the recovery above key resistance levels is encouraging, the overall market dynamics and the influence of Bitcoin cannot be ignored. It will be interesting to see how Ethereum navigates through the various support and resistance levels in the coming days. Traders and investors should remain vigilant and adapt their strategies accordingly to capitalize on potential opportunities in the market.