Ethereum (ETH) shows signs of resilience in its price action, trading around $2,622.21 with a 1.20% increase over the last 24 hours, at the time of press. The cryptocurrency has witnessed a notable recovery from its recent decline, although it faces significant resistance ahead.
As highlighted by Crypto Tony, an analyst, the key focus for traders and investors is whether Ethereum can reclaim the critical resistance level at $2,850, a former support now acting as a resistance to further upward momentum. The outcome of this battle could define Ethereum’s near-term price trajectory.
The Ethereum’s price action on the weekly chart reveals a market in consolidation, attempting to recover from previous losses. The current price movement is characterized by a struggle to break through resistance levels that previously served as support.
Specifically, the $2,850 mark stands out as a crucial resistance point. This level was once a robust support but has flipped into resistance following Ethereum’s recent downtrend. Despite multiple attempts, the price has failed to decisively reclaim this level, resulting in a period of sideways movement.
Ethereum Price Action Faces Crucial Resistance at $2,850If Ethereum manages to break above $2,850, it could open the door to further gains. The next significant resistance lies in the $3,200 to $3,400 zone. This area has historically been a challenging hurdle for Ethereum, with the price facing rejection multiple times in the past. A successful breach of this zone could signal a bullish reversal, potentially leading to a sustained upward trend.
On the downside, Ethereum is supported by several key levels that could prevent further declines. The immediate support is located around $2,350, a level that has provided stability during recent pullbacks.
This support could act as a buffer against any selling pressure, helping to maintain the current consolidation phase. Below this, the $2,160 level emerges as a major support zone. This level has held firm on multiple occasions and represents a critical line of defense. A break below $2,160 could trigger a deeper correction, potentially leading to further losses.
Technical indicators provide additional insights into Ethereum’s price dynamics. The Relative Strength Index (RSI) on the daily chart reads 41.93, suggesting that the market is approaching oversold conditions. This could indicate that selling pressure is waning, setting the stage for a potential bounce. Additionally, the Moving Average Convergence Divergence (MACD) is above the signal line, indicating a potential upward momentum shift.
