TLDR
Ethereum has initiated a recovery wave, breaking above $3,250 and maintaining position above $3,300
Technical analysis shows a break above a bearish trend line at $3,320 on the hourly chart
Price reached a high of $3,473 before a minor correction
Strong support levels established at $3,280 and $3,200
Potential resistance points identified at $3,420 and $3,480, with possible targets at $3,550 and $3,650
The cryptocurrency market saw renewed activity as Ethereum, the second-largest digital asset by market capitalization, demonstrated steady upward movement above the $3,300 mark. The latest price action shows Ethereum maintaining its position above critical support levels while testing new resistance points.
Market data from leading cryptocurrency exchange Kraken indicates that Ethereum initiated its upward trajectory by clearing the $3,240 level. The movement, while measured compared to Bitcoin’s recent performance, established a series of higher lows that technical analysts consider a bullish indicator.
The digital asset successfully breached several key resistance levels, including $3,300 and $3,320, placing it in what traders term a “positive zone.” This zone represents a price range where buying pressure typically exceeds selling pressure, creating conditions favorable for continued upward movement.
During the recent price action, Ethereum reached a local high of $3,473, marking the peak of its current recovery phase. Following this peak, the price experienced a minor retracement, which traders view as a normal consolidation pattern after a strong upward move.
Technical analysis of the hourly chart reveals the formation and subsequent break of a bearish trend line at the $3,320 level. This technical development suggests that sellers’ control over the market may be weakening, potentially opening the path for further price appreciation.
The price maintains its position above the 100-hourly Simple Moving Average, a technical indicator that many traders use to determine the overall market trend. This positioning above the moving average typically indicates positive market sentiment and often serves as dynamic support.
Current market structures show Ethereum facing resistance near the $3,400 mark, with additional overhead resistance at $3,420. These levels represent price points where selling pressure has historically increased, requiring stronger buying momentum to overcome.
The $3,480 level has emerged as a key resistance zone that traders are watching closely. A decisive break above this level could trigger increased buying activity, potentially pushing the price toward the $3,550 mark.
Market participants note that if buying pressure persists and Ethereum successfully clears the $3,550 resistance, the next target could be the $3,650 zone, with some analysts pointing to $3,720 as a possible extension target.
Support levels have formed at various price points, with $3,280 serving as the initial support zone. Below this, the $3,200 level represents a stronger support area, coinciding with the 50% Fibonacci retracement level of the recent upward move from $2,912 to $3,473.
Ethereum Price on CoinGecko
Trading indicators present a mixed but predominantly positive picture. The MACD (Moving Average Convergence Divergence) indicator shows increasing momentum in the bullish zone, while the Relative Strength Index (RSI) maintains its position above the 50 mark.
Volume analysis indicates steady buying pressure, though traders note the importance of increased volume to support any sustained move above current resistance levels.
Lower support zones at $3,120 and $3,050 provide additional price floors should any corrective moves develop. The psychological $3,000 level serves as a major support zone that traders expect to hold under normal market conditions.
Market order books show accumulation patterns at current levels, suggesting institutional interest in building positions at these prices.
Recent trading data indicates a preference for long positions over shorts, though the ratio remains within historical norms.
Technical formations on higher timeframes align with the hourly chart analysis, supporting the possibility of continued upward movement.
The market structure suggests room for additional price appreciation, contingent upon maintaining support above key moving averages.
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