Ethereum’s price is currently poised for a potential breakout above the $2,900 level, but it needs to surpass key resistance levels at $2,900 and $2,940 to sustain its upward momentum in the short term. Despite facing challenges in breaching the $3,000 level recently, Ethereum has found support above the $2,860 level, indicating a strong base forming in this range.
Trading below $2,950 and the 100-hourly Simple Moving Average, Ethereum is encountering a key bearish trend line with resistance at $2,905 on the hourly chart of ETH/USD. A decisive close above the resistance levels at $2,940 and $2,950 could trigger a significant uptrend in the price.
The current consolidation near the $2,860 support zone suggests a potential move towards the upside, with immediate resistance at $2,900. The 100-hourly Simple Moving Average and a key bearish trend line at $2,905 also pose as crucial resistance levels to watch. A breakout above these levels could propel Ethereum towards $2,925 and eventually the $2,940 resistance level.
On the flip side, failure to surpass the $2,925 resistance may lead to another decline, with initial support at $2,880 followed by the $2,860 and $2,810 levels. Further downside could potentially push the price towards $2,740 and $2,650 in the near term.
In terms of technical indicators, the MACD for ETH/USD is showing signs of weakening momentum in the bearish zone, while the RSI is currently below the 50 level. The major support level stands at $2,860, with a key resistance level at $2,925.
Overall, Ethereum’s price movement signals a crucial juncture for the cryptocurrency, with potential for both upside breakout and downside reversal based on key resistance and support levels.Traders and investors should closely monitor these levels for potential trading decisions and risk management strategies.
