Ethereum recently faced a significant drop in value following Bitcoin’s unexpected decline below $69,000, causing ETH to trade below the important $3,550 mark. The current price of Ethereum is below $3,550 and the 100-hour Simple Moving Average, with a resistance zone forming around this level.

For Ethereum to sustain its recovery, it needs to surpass the notable resistance zone at $3,600. Breaking through this level could lead to accelerated growth; however, there is still resistance at $3,650 and $3,680. Overcoming the resistance at $3,680 is especially crucial as it could signal a further price increase.

If Ethereum fails to rise above the $3,600 mark, a negative trend might resume. The initial support is at approximately $3,500, with stronger support at $3,475. A breakdown of these levels could potentially push Ethereum towards the $3,340 support point.

Recovery Dependent on Key Resistance Levels

Technical analysis suggests that the hourly MACD for ETH/USD remains bullish, though with some weakening. The RSI has fallen below 50, indicating a possible increase in selling pressure. Support is firm at $3,500, while resistance is set at $3,600.

Implications for the Reader

• Immediate resistance for Ethereum is at the $3,630 level, surpassing which could indicate positive momentum.
• A drop below support levels of $3,475 or $3,450 may lead to further decline towards the $3,340 level.
• The hourly MACD displays bullish signals, implying a chance for recovery unless selling pressure escalates.

Despite the recent price decrease, Ethereum has shown resilience by repeatedly testing and recovering from sub-$3,500 levels. This trend could point towards a swift rebound for the cryptocurrency, providing optimism for investors amidst the volatility.

Please note: This article was initially published on BH NEWS.