Ethereum ETH continued to lag but has managed to post a double-digit gain in a week, increasing significantly above the key $3k level. It retraced slightly due to a rejection but is now bouncing back following 2% gains.
After re-establishing support at the $2,860 level last week, ETH regained strength and flipped through a key level to tap a high of $3,146 last Saturday.
Since then, the bulls have been finding it difficult to push higher due to a rejection. This led to a slight reduction yesterday but the asset has recovered back to where it is hovering at the $3100 psychological level.
Currently, the bulls regrouping back to sustain momentum in the market. While the daily descending resistance line may suppress bullish actions, a surge above it should confirm a breakout and at the same signal a shift in the trend.
Failure to break out of this resistance line may result in another drawdown. If that happens, the price must dip below the previous low before the bears can regain control of the daily chart.
If we look at the market structure from a short-term perspective, ETH is still under the bears’ radar but they currently appear exhausted on the daily chart. If they step back, the market could be subjected to another drop.
ETH’s Key Level To Watch
While the recent $3,146 high has been a tough level for the bulls since last weekend, the potential resistance levels to watch for an increase are $3,222 and $3,357. Higher levels to keep in mind are $3,450 and $3,723.
Losing the $3,000 level may bring trading back to the major $2,817 support level, serving as a threshold for over a month. A crack from there could crash the price to $2,717 and potentially $2,500.
Key Resistance Levels: $3,222, $3,357, $3,450
Key Support Levels: $3,000, $2,817, $2,712
- Spot Price: $3,105
- Trend: Bullish
- Volatility: Low
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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