Ethereum is back on an upward trajectory after finding a solid base at the key support level of $3,051, raising hopes for continued bullish momentum. The recent rebound highlights the strength of buyer interest, as ETH resists bearish attempts to push prices lower.
As the uptrend resumes, traders are closely monitoring critical resistance zones that could shape Ethereum’s next move. Will this recovery lead to a lasting rally or will the market face renewed selling pressure?
This analysis aims to examine Ethereum’s recovery as it resumes its uptrend after defending a critical support level. By analyzing key resistance areas and walk dynamic, we seek to uncover potential scenarios for ETH price action and offer insight into whether the uptrend may gain further traction or encounter new selling pressure.
Ethereum rebound: the key support level that held the line
Ethereum rebounded from the $3,051 support level, regaining bullish strength as it neared the $3,360 resistance. Trading above the 100-day SMA on the 4-hour chart highlights sustained bullish strength, potentially supporting further gains if resistance is overcome.
An analysis of the 4-hour Relative Strength Index (RSI) reveals that the 4-hour RSI is attempting to break above the 50% level after falling to 41%, signaling a possible change in momentum. A move above 50% could indicate increasing buying pressure and support a continued uptrend, while failing to exceed this level may suggest continued downside pressure.
The daily chart shows that ETH is experiencing a strong upward movement, highlighted by the formation of bullish candlestick patterns. Trading above the key 100-day SMA further confirms the positive trend of the asset. As cryptocurrency continues on this upward path, it builds market confidence, paving the way for potential earnings, with the goal of $3,360 in sight.
Finally, the daily chart’s RSI is at 63%, reflecting strong optimism after recovering from a decline to 60%. This rebound signals a resurgence in buying pressure, suggesting a shift towards a more favorable market outlook. The steady rise in the RSI indicates that the asset could maintain its upward strength, thereby reinforcing the current trend. bullish trending and paving the way for further growth.
Critical Resistance Levels to Watch as ETH Gains Momentum
Like Ethereum is gaining momentumkey resistance levels become crucial in determining the next phase of its price movement. The immediate resistance to watch is at $3,360, which has historically been a significant obstacle to ETH’s uptrend. A successful break above this level could allow Ethereum to target the next resistance at $3,659.
However, if the $3,360 level remains resistance, ETH could face a period of consolidation or pullback before attempting to breakout again.
Featured image from Unsplash, chart from Tradingview.com
