Ethereum Tests Critical $3,000 Resistance, Mixed Outlook for Near-Term Price Action
Ethereum (ETH) is currently trading at about $2,900, up over 4% in the last 24 hours. This is because it is trying to get back to the $3,000
Quick overview
- Ethereum is currently trading at about $2,900, up over 4% in the last 24 hours, as it attempts to reach the crucial $3,000 level.
- Technical analysts are divided on whether ETH can maintain its upward momentum or will face another correction.
- The price is facing immediate resistance at $2,970, and if it breaks through this level, it could lead to a rise towards $3,050 or higher.
- On-chain metrics show mixed signals, with long-term holders strengthening but a lack of new investors potentially hindering further price increases.
Ethereum ETH/USD is currently trading at about $2,900, up over 4% in the last 24 hours. This is because it is trying to get back to the $3,000 level, which is important for the market. The latest price movement is a big improvement over last week’s low of $2,620, but technical analysts are still split on whether ETH can keep going higher or if it will have to go through another correction.
Ethereum’s Recovery Wave Meets Stubborn Resistance
Traders are cautiously optimistic now that Ethereum has moved over the $2,800 and $2,850 support levels. The asset has been able to move past the 50% Fibonacci retracement line from its latest swing high of $3,058 to its low of $2,620. This shows that it is strong even when the market is more volatile.
But it looks like bears are solidly in control below the $3,000 level. A crucial negative trend line has developed, and on the hourly chart, there is immediate resistance at $2,970. This is a technical ceiling that might stop short-term gains. The price is above the 100-hourly Simple Moving Average, which is a good indicator. However, the hourly MACD is exhibiting signs of losing momentum, even though it is still in bullish zone.
If Ethereum can break through the $2,950-$2,970 resistance cluster and the 76.4% Fibonacci retracement level, it will be able to reach the important $3,000 level. If the price moves over this level, it might start a rebound above $3,050, with possible extensions to $3,120 or perhaps $3,250 in the near future.
Elliott Wave Analysis Points to Potential Rebound from Discount Zone
Technical experts that use Elliott Wave theory see Ethereum’s latest drop below $3,000 as a Wave 2 correction. This is a normal phase of consolidation that usually happens before big price rises. The $2,800 area has been found to be a key discount zone where buying pressure has helped prices recover in the past.
This methodology suggests that Ethereum is developing a short-term bottom close to the $2,860 mark. If this support holds and the asset stays in the present ascending channel pattern, technical targets point to a possible rise toward the $3,450-$3,550 resistance zone. The upper range is marked by a downward trendline on the 4-hour chart and shows where Ethereum has been rejected in the past when there was selling pressure.
ETH’s On-Chain Metrics Reveal Mixed Signals
While technical patterns give bulls some hope, on-chain data tells a more complicated story. The HODLer Net Position Change indicator shows that long-term holders are getting stronger, and the fact that established wallets are sending less money out suggests that Ethereum’s core investors are confident. This gives the current price levels a solid base.
However, the larger surge is facing a big problem: new Ethereum addresses aren’t growing. The small amount of new money coming into the market from new investors could slow down or stop ETH’s rise to higher resistance levels. For prices to keep going up, there needs to be more than just people who already own the asset. New investors also need to get involved.
Critical Levels Define Near-Term Trajectory
Ethereum is at a very important point as it gets closer to the $3,000 test. If the cryptocurrency can’t break through the $2,950-$2,970 resistance zone, it could start to go down again. The first level of support on the downside is $2,840, and the second level is $2,780. If the price drops below $2,780, losses might speed up into $2,740 and maybe even the $2,650 area, where there is stronger support at $2,550–$2,500.
On the other hand, if the price breaks through $3,000, it would definitely make people feel bullish and open the way to the goal range of $3,131 to $3,550 that several analysts have found using different technical methods.
Ethereum Price Prediction: Cautiously Optimistic with Caveats
Ethereum’s short-term outlook seems cautiously positive based on current technical indications and the structure of the market, but it depends on a number of things. The most likely outcome is that the price will stay between $2,800 and $3,000 until either new money comes in or the bearish trend line is clearly broken.
If the breakout picks up speed, short-term price estimates for a successful breakout range from $3,050 to $3,250. More ambitious projections go up to $3,450-$3,550. But if ETH can’t break through the current resistance, it might have to test support levels between $2,650 and $2,780 again before trying to climb again.
The Relative Strength Index (RSI) is currently above the neutral 50 mark, which means that bulls have a little advantage. However, the MACD momentum is fading, which means that this advantage may not last long until something happens to spark renewed purchasing enthusiasm.
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