The cryptocurrency market has been observing significant fluctuations recently, and Ethereum has been no exception. The price of Ethereum has been on a roller coaster ride, extending losses and dropping below the $3,450 zone. However, signs of recuperation are visible as ETH is now recovering some of these losses and might witness a rise if it manages to clear the $3,445 resistance.
The downturn began with Ethereum experiencing a fresh decline below the $3,500 zone. The price is presently trading below $3,450 and the 100-hourly Simple Moving Average, an indicator often used by traders to predict future price movements.
Notably, Ethereum broke above a connecting bearish trend line with resistance at $3,300 on the hourly chart of ETH/USD (data feed via Kraken). Observers are speculating that the pair could initiate a decent increase if it manages to clear the $3,450 and $3,500 resistance levels.
Despite the recent downturn, Ethereum managed to stay above the $3,200 mark. The struggle to start a fresh increase above $3,500 level led to extended losses, akin to the Bitcoin pattern. Ethereum gained bearish momentum below the $3,400 level and even traded below $3,320.
However, the price is now consolidating above the $3,220 and $3,200 support levels. The price cleared the 50% Fib retracement level of the downward move from the $3,553 swing high to the $3,220 low, indicating a potential recovery.
On the upside, the price seems to be facing roadblocks near the $3,445 level. The first major resistance is near the $3,480 level, with the main resistance forming near $3,550. A clear move above this resistance might send the price toward the $3,650 resistance and potentially call for more gains in the coming sessions. In such a case, Ether could rise toward the $3,720 resistance zone or even $3,800.
However, if Ethereum fails to clear the $3,445 resistance, it could continue its downward trajectory. Initial support on the downside is near the $3,300 level, with the first major support sitting near the $3,220 zone. A clear move below the $3,200 support might push the price toward the $3,120 support, and any additional losses might send the price toward the $3,050 support level in the near term.
Technical indicators suggest that the MACD for ETH/USD is losing momentum in the bearish zone, and the RSI for ETH/USD is now above the 50 zone. The Major Support Level rests at $3,220, and the Major Resistance Level stands at $3,445.
As the cryptocurrency market continues its unpredictable journey, investors remain on the edge, closely observing these fluctuations. The future of Ethereum’s price hangs in the balance, depending on its ability to clear key resistance levels.
