Ethereum is regaining its footing in the market with a strong recovery, drawing attention as it moves toward the critical $3,659 resistance level.
As Ethereum (CRYPTO: ETH) regains its footing in the market with a strong recovery, it's drawing attention as it moves toward the critical $3,659 resistance level. This surge comes after a period of consolidation, where ETH stabilized and built bullish momentum.
Throughout the night, ETH encountered strong buying pressure at the $3,051 support zone, which sparked a robust rebound. This buying surge follows a period of bearish pressure, highlighting a significant shift in momentum.
The bounce near $3,051 marks a crucial turning point, showcasing the strength of this support level and the increasing bullish sentiment in the market. As ETH approaches the $3,659 resistance, it will be essential to monitor the token's ability to sustain this upward trajectory. A successful breach could pave the way for more gains and reaffirm ETH’s resilience in the face of recent challenges.
While ETH is currently trading below the 100-day Simple Moving Average (SMA), the recent rebound suggests growing bullish pressure. A decisive move above the SMA could further strengthen Ethereum’s recovery, setting the stage for a potential test of higher resistance levels.
Moreover, the Relative Strength Index (RSI) indicates that Ethereum may be poised for further upward movement. The RSI line, which had recently dipped into the oversold zone, is now attempting to climb toward the critical 50% threshold. This shift suggests a possible reversal in market sentiment, with buyers gradually regaining control after a period of bearish dominance. A successful rise above 50% would reinforce the case for sustained bullish momentum, potentially driving ETH higher as market confidence builds.
As ETH continues its recovery, attention now turns to key resistance levels that could define its short-term trajectory. The first key resistance is $3,659, a pivotal level that could confirm ETH’s upside strength and attract increased buying interest if breached. Beyond this, $4,100 serves as the next resistance, which may drive ETH toward the $4,863 mark, reinforcing its recovery and signaling continued upward potential.
However, failure to overcome these resistance levels could stall ETH’s rally and invite renewed bearish pressure. Furthermore, a rejection at $3,659 or $3,870 might lead to a period of consolidation or even a pullback, testing the strength of lower support levels.
