Ethereum has been on a roller coaster ride lately. After a dizzying fall, the second largest crypto managed to recover and regain ground. However, the path to stability is not yet assured. Let’s take a closer look at this turbulent trajectory.
Ethereum back to green after a significant drop!
The price of Ethereum recently suffered a drastic decline, falling more than 10% to bottom around $2,852. Nevertheless, buyers quickly came forward, allowing ETH to recover above the symbolic $3,000 mark. However, this rebound was not easy, as ETH had to face several resistances around $3,200.
Despite these obstacles, a bullish channel has formed on the ETH/USD 4-hour chart, hinting at further upside potential. The first major resistance lies around $3,250, followed by a key level at $3,300. If ETH manages to cross these thresholds, it could then target $3,360 and then venture towards $3,500 and $3,620. A scenario which, if it materializes, would allow the second crypto to return to peaks.
Critical levels to monitor
Although the momentum is favorable, Ethereum is not completely out of the woods yet. Indeed, the price must imperatively remain above the crucial support of $3,000 to avoid a new bearish wave. Otherwise, a move below this threshold could open the way to a fall towards $2,880 then $2,750. A scenario that investors hope to avoid at all costs.
Looking at the technical indicators, we notice that the hourly MACD for the ETH/USD pair is gradually losing its strength. This is entering a bearish zone, a sign that the bullish momentum is losing steam somewhat. However, the hourly RSI is currently holding above the threshold of 50, demonstrating some buyer appetite.
Ethereum has been through a tumultuous period in recent days, suffering a significant decline before recovering and beginning a rebound. Although resistance persists, an upward channel appears to be emerging, suggesting significant upside potential for the crypto.
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