Ethereum, the second-largest cryptocurrency by market capitalization, is currently facing a minor recovery wave above the $3,200 zone, following a plunge to the $3,160 level. Despite the slight recovery, the digital asset continues to struggle beneath the $3,320 mark, and the 100-hourly Simple Moving Average, indicating a potential downtrend if the resistance level persists.
In the midst of this struggling phase, a connecting bullish trend line appears to be forming with support at $3,250 on the hourly chart of ETH/USD, according to data feed via Kraken. However, the pair seems to be facing an uphill battle, struggling to kickstart a fresh increase above the $3,320 resistance level.
Following a similar trend to Bitcoin, Ethereum initiated a short-term recovery wave from the $3,160 level, managing to float above the $3,200 and $3,220 resistance levels. The price successfully cleared the 23.6% Fib retracement level of the downward move from the $3,743 swing high to the $3,160 low.
Despite this, Ethereum continues to face active bears below the $3,320 and $3,350 levels. The digital asset is currently trading below the $3,320 mark and the 100-hourly Simple Moving Average. On the upside, it seems to be encountering hurdles near the $3,300 level.
The first significant resistance is hovering near the $3,320 level. The primary resistance is now forming near the $3,450 mark and the 50% Fib retracement level of the downward move from the $3,743 swing high to the $3,160 low. Should there be a clear ascend above the $3,450 resistance, the price might potentially surge towards the $3,500 resistance.
Furthermore, an upside break above the $3,520 resistance could pave the way for more gains in the coming sessions. In such a scenario, Ether could escalate towards the $3,650 resistance zone or even $3,720 in the near term.
On the flip side, if Ethereum fails to clear the $3,320 resistance, it could potentially trigger another decline. Initial support on the downside is near the $3,250 level and the trend line, with the first major support sitting near the $3,220. A clear descend below the $3,220 support might push the price towards the $3,160 support. Any further losses might send the price towards the $3,050 support level in the near term, with the next key support sitting at $3,000.
Technical indicators suggest a growing momentum in the bearish zone with the MACD for ETH/USD. The RSI for ETH/USD is now below the 50 zone, indicating a bearish market sentiment. The major support level stands at $3,220, and the major resistance level at $3,320.
