Crypto - Ethereum Recovers After a Sharp Decline!

Ethereum has experienced a rollercoaster ride recently. After a precipitous drop, the second-most important cryptocurrency managed to regain its footing and recover some ground. However, the path to stability is not yet certain. Let’s take a closer look at this turbulent trajectory.

Ethereum Back in the Green After a Significant Drop!

The price of Ethereum recently underwent a sharp decline, falling by over 10% to reach a low around $2,852. Nonetheless, buyers quickly emerged, enabling ETH to recover above the symbolic $3,000 mark. However, this rebound was not smooth sailing, as ETH had to contend with several resistances around $3,200.

Despite these hurdles, a bullish channel has formed on the 4-hour ETH/USD chart, hinting at additional upside potential. The first major resistance is situated around $3,250, followed by a key level at $3,300. If ETH can break through these thresholds, it could then target $3,360 and, venture towards $3,500 and $3,620. A scenario that, if realized, would allow the second-largest crypto to reconnect with its highs.

Critical Levels to Watch

Although momentum is positive, Ethereum has not completely escaped danger. Indeed, the price must remain above the crucial support of $3,000 to prevent a new bearish wave. Otherwise, a dip below this threshold could pave the way for a fall to $2,880 and then $2,750. A scenario investors hope to avoid at all costs.

Examining the technical indicators, we notice that the hourly MACD for the ETH/USD pair is gradually losing strength, entering a bearish zone, a sign that bullish momentum is somewhat waning. However, the hourly RSI is currently maintaining above the 50 threshold, indicating a certain appetite from buyers.

Ethereum has gone through a tumultuous period in recent days, suffering a significant drop before regaining composure and starting a rebound. Although resistances persist, a bullish channel seems to be taking shape, suggesting significant upside potential for the crypto.