Bulls push past several resistance levels
TLDR
Ethereum started a wave of recovery, pushing the $3,240 resistance level and breaking out of the contracting triangle pattern. The cryptocurrency showed strong momentum, gaining more than 5% and reaching a high of $3,473. . On average, key resistance levels indicating positive market sentiment are established at $3,480 and $3,500, with potential support levels at $3,550 and $3,650 at $3,350 and $3,280, critical support at $3,050.
Ethereum has shown impressive price action in recent hours, breaking through multiple resistance levels and establishing a strong recovery pattern. The second largest cryptocurrency by market capitalization crossed the $3,400 mark, registering a significant 5% increase in value.
The latest price move started with Ethereum breaking above the $3,150 level following Bitcoin's broader market trend. The cryptocurrency successfully cleared several key resistance points, including $3,180 and $3,240, placing it firmly in positive territory.
Technical analysis shows the discovery of a contracting triangle pattern on the hourly chart, with the previous resistance at $3,240 now serving as support. This breakout proved crucial, as ETH continued its upward trajectory, testing highs at $3,350 and $3,400.
The momentum took the price to a high of $3,473, representing a significant recovery from recent lows. Following this high, the market entered a consolidation phase, allowing traders to assess the sustainability of the current move.
Current trading data shows that Ethereum is above both $3,300 and its 100-hourly simple moving average, indicating continued buyer interest. This technical position provides a solid foundation for a possible upward move.
The structure of the recovery looks methodical, with clear support and resistance levels established along the way. The 23.6% Fibonacci retracement level reached from the recent low of $3,186 to the high of $3,473, the market showed resistance above this point.
Market participants are now looking at the $3,450 zone, which has emerged as an immediate barrier. Above this, the $3,480 level provides the first major resistance point, while $3,500 serves as a psychological barrier that can influence trading behavior.
Trading volume patterns indicate healthy market participation, supporting the current price action. A steady increase in buying pressure suggests traders are gaining confidence in the sustainability of the recovery.
The hourly MACD indicator, while still in the bullish zone, is showing signs of slowing down, suggesting that consolidation will continue before any further upward movement. This technical signal allows traders to prepare for short-term price corrections.
Looking at possible support levels, the market has established strong foundations at $3,350, further support at $3,280, with the recent upward 50% Fibonacci retracement level at $3,350.
If selling pressure should increase, the market has several support levels to maintain stability. The $3,240 zone, which previously served as resistance, now serves as a support level, with additional support at $3,120 and $3,050.
The RSI indicator remains above the 50 zone, which indicates that buyers are controlling the momentum of the market. This technical scale supports the growing bullish narrative in the Ethereum market.
Short-term price targets above current levels include the $3,550 and $3,650 zones, with some analysts suggesting that $3,720 is possible if the current trend continues.
The recovery pattern shows similarities with previous successful crashes, which suggests that the market follows established technical patterns. However, traders remain alert to potential resistance at higher levels.
The most recent data shows stable trading conditions above $3,400, supporting a steady amount of price action. The market continues to monitor key resistance levels to ensure the continuation of the recovery.
