Continued activity in the cryptocurrency market is evident, with the top altcoin, Ethereum (ETH), recently experiencing a downward correction from the $3,150 resistance level. Despite this correction, ETH remains resilient and has the potential to recover.
Ethereum has managed to maintain its position above the $3,000 mark throughout the past week, indicating that the bulls are currently in control. The fact that it is trading above the $3,050 level suggests that ETH is undergoing a healthy correction process. Although there was a brief decline after reaching a new weekly peak of $3,144, the bears intervened around the $3,150 mark.
It is important to note that Ethereum is currently trading near the $3,120 level. The immediate resistance for ETH lies at $3,080, with a connecting downtrend line at that level on the hourly chart of ETH/USD. A sustained move above this line could potentially lead to a retest of the $3,150 level.
If Ethereum manages to surpass the $3,150 resistance level, it could gain new upward momentum. Breaking above this resistance level would contribute to a further increase in price. The bulls’ strength at this critical level could create a positive market sentiment.
The next significant resistance level is at $3,200, and surpassing this level could generate interest and push the price towards $3,250. If there is a clear move above $3,250, the price could rise and test the $3,320 resistance.
It is crucial to pay attention to certain levels for Ethereum. Firstly, the initial support level is around $3,065, which could limit short-term declines. However, if this support level is broken, the next major support area investors should watch is $3,000. Breaching this critical level puts the price at risk of falling to $2,980, and if it fails to hold at that point, Ethereum could retreat to levels around $2,860.
Technical indicators provide insights into the current state of Ethereum. The MACD on the hourly chart shows a loss of momentum in the bullish zone, indicating weakening upward movement and increasing selling pressure. The MACD’s situation suggests that investors are uncertain and hesitant about the sustainability of current price levels.
Furthermore, the hourly RSI is currently below the 50 level. RSI typically signals oversold conditions below 30 and overbought conditions above 70. An RSI value below 50 indicates that the market is generally under selling pressure and the price is trending downward. This raises concerns among investors.
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Disclaimer: The information provided in this article should not be considered as investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should conduct their own research.