Ethereum price has started a promising recovery, surging past the $2,650 resistance level and showing signs of further upside potential. The second-largest cryptocurrency by market cap has been underperforming Bitcoin recently but appears to be regaining its footing.
After bottoming out at $2,120, Ethereum has staged an impressive comeback, breaking above key resistance levels such as $2,550 and $2,650. The price action also saw a break above a short-term declining channel on the hourly chart, indicating a shift in sentiment towards the bullish side.
However, Ethereum is currently facing hurdles near the $2,840 level and the 100-hourly Simple Moving Average. If the bulls can overcome this resistance, the next target would be the $2,880 level, followed by the critical $2,920 zone, which coincides with the 61.8% Fibonacci retracement level of the recent downswing from $3,400 to $2,120.
A convincing break above $2,920 could pave the way for a retest of the psychological $3,000 barrier. If the bullish momentum persists, Ethereum might even extend its gains towards the $3,120 resistance zone or higher in the near term.
On the flip side, if Ethereum fails to clear the $2,840 resistance, it could trigger another round of selling pressure. The initial support on the downside lies near the $2,700 level, followed by the $2,640 zone. A breach below these support levels might invite further losses, potentially pushing the price towards $2,550 or even $2,500.
The hourly MACD is gaining momentum in the bullish zone, while the hourly RSI has climbed above the 50 level, supporting the bullish outlook for Ethereum in the short term. However, traders should remain cautious and watch for any signs of weakness, as the market remains volatile and prone to sudden reversals.
As Ethereum attempts to reclaim lost ground, its performance in the coming days could set the tone for the broader altcoin market. A sustained recovery in Ethereum prices might encourage investors to rotate funds into other altcoins, potentially leading to a more widespread rally. On the other hand, if Ethereum’s rally falters, it could dampen sentiment and lead to further consolidation or correction in the altcoin space.
Tags: Ethereum price, ETH recovery, bullish momentum, resistance levels, support zones
Source: https://www.newsbtc.com/analysis/eth/ethereum-price-higher-levels-3000/