Following a series of sell-offs last month, ETH tested a two-month low and found support. It is slowly regaining momentum and is now heading towards a confluence resistance line that could lead to a breakout.
Ethereum ended last week's trading slightly stronger after posting losses the previous week. After establishing base support above the $2,852 level, it rose and moved well above $3,000.
The week started on a positive note, with prices rising 3% in hopes of further gains. Because of this, Ethereum rose and regained the $3,200 level just a few minutes ago. We are currently targeting major resistance lines.
On the daily chart, this resistance line corresponds to the $3,450 level that flipped as support two weeks ago. A surge above this resistance could fuel further market recovery. If a rejection occurs, the price may fall slightly before rising sharply.
Meanwhile, the short-term market structure reveals that ETH is still in a descending range, forming a pattern of lows and highs on the daily chart. If the market continues this pattern, we could soon see another disaster.
Technically speaking, the bulls appear to be back in the market, but they need to regain the March highs before they can fully take control. Nevertheless, the second-largest cryptocurrency remains bullish on a macro level.
Key levels to watch for ETH
If there is a spike, the key resistance levels to watch for testing are $3,723 and $3,900. The $4,094 level is the next major resistance level to keep in mind for a breakout.
At the moment, the $3,200 and $3,000 levels are the closest supports to the downside. If these supports cannot be sustained, the price may fall back to holding the support at $2,852 before plummeting to $2,712.
Main resistance levels: $3,450, $3,723, $3,900
Key support levels: $3,000, $2,852, $2,712
- Spot price: $3,221
- tendency: strong
- Volatility: expensive
Disclosure: This is not trading or investment advice. Always do your research before purchasing any cryptocurrency or investing in any service.
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