Crypto: Ethereum at $3,000, a dam about to break?

Despite a recent correction, Ethereum (ETH) remains above the psychological threshold of $3,000. This resilience could signal an interesting bullish potential for the second-largest crypto in the market. Let’s decipher the key levels to watch.

Ethereum Consolidates Its Position Above $3,000

Over the past week, ETH has managed to stay consistently above the crucial support of $3,000. This performance underscores the dominance of the bulls in the market. By trading above $3,050, Ethereum shows signs of a healthy correction.

However, the recent weekly high reached at $3,144 faced a slight pullback when sellers intervened near $3,150. Currently, ETH is trading around $3,120, with immediate resistance located at $3,080. Additionally, a bearish trend line is visible on the ETH/USD hourly chart. However, a sustained move above this line could pave the way for a retest of the $3,150 level.

Furthermore, a confirmed break above the $3,150 mark would give Ethereum the momentum needed to target higher price levels. The ability of buyers to remain strong at this key resistance level could inspire a bullish sentiment in the market.

The next major hurdle stands at $3,200. Beyond that, interest in ETH could intensify and propel its price towards $3,250. A clear breakout above $3,250 would open the way for a test of the $3,320 resistance.

Supports to Watch Closely

In the short term, the first notable support for Ethereum lies around $3,065. This level could contain a temporary decline. However, in case of a break, the next major support to consider is the psychological threshold at $3,000.

If the latter were to give way, ETH could risk falling to $2,980. Failure at this stage would expose the crypto to a deeper correction towards $2,860.

On the hourly chart, the MACD indicator is losing strength in positive territory, signaling a weakening of the bullish momentum and increasing selling pressure. Additionally, the RSI index below 50 reflects a market under bearish pressure, raising concerns among investors.

In summary, as analyzed in our latest article, Ethereum is still struggling to keep up with Bitcoin’s rapid pace. The imminent decision by the SEC regarding a spot Ethereum ETF keeps traders on edge. Despite long-term optimism, a rejection could trigger a short-term correction.