After a week of tumultuous trade influenced by external market forces and internal developments, Ethereum (ETH) is trying to confirm its position above $3,100. The second-largest digital asset experienced a sharp decline after testing the resistance at $3,530, however, there are some signs that the recent lows could be reversed.
Ethereum has started a recovery journey from lows around $3080, although with less momentum compared to Bitcoin’s recent rally. As of now, Ethereum has an immediate hurdle near the $3350 level coinciding with the 100-hour Simple Moving Average (SMA). This leap might open up doors for retesting resistance levels higher and potentially stabilizing above $3500.
Currently, ETH is struggling in an unfavorable trading climate where it is difficult to have any slippage beneath crucial support price points. At present time the price of Ethereum trades at $3,257.69 with an immediate barrier standing at $3300. ETH value is now hanging between the ranges of approximately 3,255 dollars up to 3,237 dollars.
Technical indicators hint at cautious optimism among traders. MACD for ETH/USD suggests bullish signals within lower time frames in addition to potential buy interests around these prices. The RSI has dropped below 50 mark implying the intensity of the pullback on the daily timeframe.
Nevertheless, Ethereum appears somewhat resilient as it managed to break above an important bearish trendline with resistance near $3,220 on the hourly ETH/USD chart. This breakout is corroborated by the 23% Fibonacci retracement taken from the latest drop thereby enhancing further upside anticipation.
Just like what occurred in Bitcoin’s trading history after ETF approval, the recent endorsement of Ethereum ETFs has led to a “sell the news” event that is now customary. Consequently, this external trigger has increased volatility as well as selling pressure resulting in a fall of Ethereum below expected support levels. However, once these developments have been absorbed by the market, there is a possibility of seeing some recovery if Ethereum manages to keep itself above $3180.
The outlook for Ethereum is challenging. To target the next major resistance at $3550, the cryptocurrency must first surpass immediate resistance at $3300.If this hurdle is crossed successfully, we may expect a bullish run up to about $3720 that would be quite significant. Nevertheless there are potential hindrances along this path.
In case it fails to overcome the hurdle at $3,300 however; another round of sell off could follow near lower support levels. Initial support lies around $3,185 .A stronger one comes in place from August lows of $3k to July lows approximately at $3,085 whereby a break below here may push ETH towards $3,020 and possibly extend declines further downwards.