Ethereum is back on an upward trajectory after finding solid footing at the $3,051 key support level, sparking hopes for continued bullish momentum. The recent rebound highlights the strength of buyers’ interest, as ETH resists bearish attempts to drive prices lower. 

As the uptrend resumes, traders are closely eyeing critical resistance zones that could shape Ethereum’s next move. Will this recovery lead to a sustained rally, or will the market face renewed selling pressure?

This analysis aims to examine Ethereum’s recovery as it resumes its uptrend after defending a critical support level. By analyzing key resistance zones and market dynamics, we seek to uncover potential scenarios for ETH’s price movement and offer insights into whether the uptrend can gain further traction or encounter renewed selling pressure.

Ethereum’s Rebound: The Key Support Level That Held The Line

Ethereum has rebounded from the $3,051 support level, regaining bullish strength as it approaches the $3,360 resistance. Trading above the 100-day SMA on the 4-hour chart highlights sustained upward strength, potentially supporting more gains if resistance is overcome.

An analysis of the 4-hour Relative Strength Index (RSI) reveals that the 4-hour RSI is attempting to rise above the 50% level after falling to 41%, signaling a possible shift in momentum. A move above 50% could indicate increasing buying pressure and support a continued uptrend, while failure to break above this level may suggest ongoing bearish pressure.

The daily chart shows that ETH is experiencing strong upside movement, which is highlighted by the formation of bullish candlestick patterns. Trading above the key 100-day SMA further confirms the asset’s positive trend. As the cryptocurrency continues on this upward path, it boosts market confidence, paving the way for potential gains, with the $3,360 target in sight.

Finally, the daily chart’s RSI is at 63%, reflecting strong optimism after recovering from a dip to 60%. This rebound signals a resurgence in buying pressure, suggesting a shift toward a more favorable market outlook. The RSI’s steady rise indicates that the asset may sustain its upward strength, reinforcing the ongoing bullish trend and paving the way for more growth.

Critical Resistance Levels To Watch As ETH Gains Momentum

As Ethereum gains momentum, key resistance levels become crucial in determining the next phase of its price movement. The immediate resistance to watch is at the $3,360 mark, which has historically acted as a strong barrier to ETH’s uptrend. A successful break above this level could lay the groundwork for Ethereum to target the next resistance at $3,659.

However, if the $3,360 level holds as resistance, ETH may face a period of consolidation or pullback before making another attempt at breaking through.

Featured image from Unsplash, chart from Tradingview.com

Negative sentiment is gradually growing in the general crypto market once again, with major digital assets like Ethereum, the second-largest cryptocurrency, witnessing a notable setback that led to a slowdown of its renewed upside price momentum. Due to the sudden drop, several crypto analysts believe that the altcoin could face an extended bearish movement shortly.

Ethereum Set To Enter A Correction Phase

IC News, an informative platform has delved into Ethereum’s current price action, offering an insightful perspective about its performance in the near term. After a thorough examination, the platform highlighted that ETH might be on the brink of a temporary corrective phase as market momentum cools off following recent gains. The platform’s prediction is due to signs of overbought conditions and profit-taking by retail and institutional investors, which could affect the stability of the crypto asset’s value.

According to IC News, Ethereum is currently getting close to a critical resistance area at the $3,600 price level, where there is a lot of supply and room for profit-taking. Given how robust this resistance level is, the platform claims there is a good chance that a brief period of correction could occur soon to limit buying pressure.

Furthermore, IC News points out that in order to create a more stable uptrend for Ethereum, the market will have to fall back toward the 200-day Moving Average (MA). 

While the analysis might spark worries about the altcoin‘s short-term trajectory, the pullback may turn out to be healthy for the asset. This is because the altcoin may create new strong support levels during the correction phase and fortify its base for future price expansion. It could also present several buy signals and opportunities for new and seasoned investors, allowing them to reassess their positions in light of waning market sentiment.

Despite the sudden price decline, the digital asset persistently demonstrates bullish potential in the broader outlook, with market expert and trader, Captain Faibik predicting a mid-term price target for Ethereum at the $5,450 level.

Thus far, Ethereum continues to move within the Broadening Wedge pattern, a key indication of rising momentum. Meanwhile, Captain Faibik anticipates a breakout from the bullish formation in the coming days, which will trigger another huge rally for ETH, potentially to $5,450 in the mid-term.

ETH Now Ahead Of America’s Banking Giant

Ethereum’s recent upswing has led the altcoin to crucial milestones in the last few days, such as surpassing financial behemoth Bank of America by market capitalization. On Sunday, ETH saw a surge in its overall market cap by over 5%, bringing it to a total of $383 billion and breaking past the market cap of Bank of America by a whopping $40 billion.

IC News stated that the crypto asset’s high valuation in comparison to Bank of America reflects a change in the dynamics of the traditional sector as blockchain technology adoption and growth start to outpace traditional banking systems.

Featured image from Unsplash, chart from Tradingview.com