The rebound met resistance at the $3,320 level
TLDR
Ethereum showed a slight recovery from $3,160 when it faced resistance at $3,320. A bullish trend line is forming at $3,250 support on the hourly chart. Key resistance levels have been established at $3,320 and $3,450. If there is a potential move to $3,500, broken technical indicators bearish momentum from If MACD is in the hidden zone and RSI is below 50 support They suggest that with breaks at $3,220, ETH may test lower levels at $3,160 and $3,050.
After finding support at $3,160, Ethereum has started a recovery phase by going above the $3,200 price level. The second-largest cryptocurrency by market capitalization has recently shown resistance to price action, although it continues to face challenges at higher levels.
The recovery movement started after ETH established a local bottom at $3,160, and buyers stepped in to push the price higher. This upward momentum has carried the price through initial resistance levels of $3,200 and $3,220, marking the early stages of what looks like a broader recovery attempt.
Technical analysis shows the formation of a bullish trend line at $3,250 on the hourly chart. This pattern suggests that buyers are trying to establish a base for further gains, even if the market remains cautious.
The price action cleared the 23.6% Fibonacci retracement level, which measured from the recent high of $3,743 to a low of $3,160. Although the move remains below strong resistance levels, this technical level indicates some buying pressure.
Current market conditions indicate that ETH is trading below both the $3,320 price point and the 100 hourly simple moving average. The presence of these technical barriers immediately created a challenge to move up.
The $3,300 area has emerged as a prominent resistance zone, with several attempts to break above this level being rejected. Traders are closely watching the $3,320 mark as a key level that could determine the next directional move.
A more significant resistance level is set at $3,450, which coincides with the 50% Fibonacci retracement level of the recent downward move. This price point represents a critical hurdle the bulls must overcome to establish a more compelling recovery narrative.
Market participants note that a successful break above $3,450 could pave the way to the $3,500 psychological level. Such a move could attract more buying interest and lead prices towards higher targets at $3,650 or $3,720.
However, the current price action suggests caution as ETH struggles to maintain momentum above key levels. Every hour the MACD indicator shows the momentum in the hidden zone, the RSI remains below the 50 mark, which indicates that the buyers have not yet established full control.
Support levels have been established at $3,250 and $3,220, these areas will serve as potential reversal points if price experiences another pullback. A break below these levels could trigger a retest of the recent low of $3,160.
The market structure suggests that if the selling pressure intensifies and breaks the $3,220 support, ETH could see further downward movement towards the $3,160 level. Extended weakness could bring the $3,050 support into focus.
Trading volumes have remained stable during this phase of the recovery, although they have not shown the kind of high volume associated with strong directional movements. This shows caution among market participants.
Hourly chart patterns indicate the formation of lower highs, suggesting that sellers become active on gradual lows. This creates a challenging environment for further upward momentum.
Recent price action shows a convergence between $3,220 support and $3,320 resistance, creating a range where traders can look for breakout signals. The direction of the last break from this range can determine the next medium-term trend.
The most recent data shows ETH trading near $3,280, as market participants await clear direction signals. Trading activity is focused on established support and resistance levels, neither bulls nor bears have made significant gains.
