Ethereum, the world’s second-largest cryptocurrency by market capitalization, is showing signs of a healthy recovery, with its price initiating a wave of increment above the $3,240 zone. This promising trend comes after a period of relatively lower valuations, rekindling optimism among investors and market analysts. Currently, the price of an Ethereum token is comfortably trading above $3,320, with the 100-hourly Simple Moving Average also reflecting a positive trajectory.
An interesting development that marked this recovery was the disruption of a short-term contracting triangle. The resistance at $3,240 on the hourly chart of ETH/USD, according to data feed via Kraken, was surpassed, indicating a potential for continued growth if the Ethereum price manages to clear the $3,480 resistance level.
This recovery wave has seen Ethereum’s price gaining over 5%, taking a leaf out of Bitcoin’s book which also experienced a similar recovery above the $3,150 level. The Ethereum price successfully navigated past the $3,180 and $3,240 resistance levels, entering into a short-term positive zone.
The price surge didn’t stop there. Ethereum managed to break past the $3,350 and $3,400 levels, eventually testing the $3,480 zone. After hitting a high at $3,473, the price is now on a consolidation phase, holding onto its gains.
However, the journey upward is not without obstacles. The Ethereum price seems to be encountering challenges near the $3,450 level, with the first significant resistance near the $3,480 level. The main resistance is now forming near the $3,500 level. If Ethereum manages to clear this resistance, we could witness a further rise towards the $3,550 resistance.
But, what happens if Ethereum fails to clear the $3,480 resistance? The possibility of another decline cannot be ruled out. In that scenario, the first support is expected near the $3,350 level, with a major support predicted near the $3,280 level, which is the 50% Fib retracement level of the upward move from the $3,186 swing low to the $3,473 high.
Technical indicators provide additional insights. The hourly MACD for ETH/USD is gradually losing momentum in the bullish zone. However, the hourly RSI for ETH/USD is currently above the 50 zone, indicating a more bullish trend. For now, all eyes are on Ethereum as it approaches the major resistance level of $3,480, with a major support level at $3,280.
