Following a series of selling in the past month, ETH tested a two-month low and found support. It is slowly regaining strength and now aims at a confluence resistance line, where a potential breakout may occur.
Ethereum ended last week’s trading a bit strong after posting losses in the preceding weeks. After establishing base support above the $2,852 level, it climbed back and pushed well above $3,000.
Starting this week positive, the price is up 3% as it charges for more gains. Due to this, Ethereum advanced high and reclaimed the $3,200 level just a few minutes ago. It currently targets a key resistance line.
On the daily chart, this resistance line corresponds with the $3,450 level that flipped as support two weeks ago. A surge above this resistance could facilitate more recoveries in the market. If a rejection occurs, the price may pull back slightly before surging.
Meanwhile, the short-term market structure reveals that ETH is still in a downward range – forming a lower low and lower high pattern on the daily chart. Should the market continue to follow this pattern, we may see another bloodbath in no time.
Technically, the bulls appeared back in the market, but they must reclaim March’s high before gaining full control. Notwithstanding, the second-largest cryptocurrency remains bullish on the macro level.
ETH’s Key Level To Watch
In case of a surge, the key resistance levels to watch for the test are $3,723 and $3,900. The $4,094 level is the next major resistance to keep in mind for a breakup.
Right now, the $3,200 and $3,000 levels are the closest supports to watch for a drop. Failure to hold above these supports could bring the price back to the holding of $2,852 support before plunging to $2,712.
Key Resistance Levels: $3,450, $3,723, $3,900
Key Support Levels: $3,000, $2,852, $2,712
- Spot Price: $3,221
- Trend: Bullish
- Volatility: High
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any service.
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