Ethereum's Price Recovery Amid Market Volatility

Published on: Apr 15, 2024|4 min read

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London: 15 April 2024 (TraderMade): The crypto market has been experiencing some volatility lately, and Ethereum (ETH) is no exception. After a significant drop of over 10%, Ethereum found support near $2,550 and has since recovered, reclaiming the $3,000 mark.

But can ETH sustain this upward momentum? In this blog post, we'll discuss Ethereum's recent price movements, key technical levels to watch, and what might lie ahead for the second-largest cryptocurrency.

Key Takeaways

Ethereum initiated a recovery wave after finding support near $2,550, reclaiming the $3,000 level.
Immediate resistance is at $3,200, followed by key levels at $3,250, $3,300, and $3,360. A major hurdle lies at $3,500, which could trigger bullish momentum.
On the downside, initial support is at $3,080, followed by the crucial $3,000 zone. Further declines could target the $2,880, $2,750, and $2,550 levels.
The MACD for ETH/USD is losing momentum in the bearish zone, while the RSI has crossed above the 50 level, indicating a potential bullish bias.

Ethereum's Recent Price Action

Ethereum Price Eyes Recovery Wave

Ethereum began its descent from the $3,550 resistance level, witnessing a sharp decline of over 10%. The price dropped below the crucial $3,000 support, even dipping below $2,750 to test $2,550.

However, a low was established near $2,537, and Ethereum is now in the midst of an attempted recovery wave. The price has managed to climb back above the $2,800 and $3,000 resistance levels.

This means it has surpassed the 50% Fibonacci retracement level of the downward move from the $3,615 swing high to the $2,537 low.

Key Resistance and Support Levels

Currently, Ethereum is trading below $3,250 and the 100-hourly Simple Moving Average. Immediate resistance is around the $3,200 mark, aligning with the 61.8% Fibonacci retracement level from the recent downward trend.

Additionally, a rising channel is forming with resistance at $3,200 on the hourly chart of ETH/USD. The first major resistance is expected to be near the $3,250 level, followed by the $3,300 and $3,360 levels.

The ultimate hurdle lies at $3,500, above which Ethereum could potentially gain bullish momentum, targeting the $3,620 and even $3,750 zones. On the downside, if Ethereum fails to clear the $3,250 resistance, it could resume its decline.

Initial support is near the $3,080 level, followed by the key $3,000 zone. Further down, the $2,880 level is the next major support and a clear break below this could lead Ethereum to $2,750 and even $2,550.

Technical Indicators

Hourly MACD: The MACD for ETH/USD is showing signs of losing momentum in the bearish zone.
Hourly RSI: The RSI for ETH/USD has crossed above the 50 level, indicating a potential bullish bias.

Market Outlook

Geopolitical Tensions and Market Sentiment

The market has managed to shake off concerns regarding escalations between Iran and Israel, as the U.S. seems to have persuaded Israel against a counter-attack.

As a result, Bitcoin (BTC) has bounced back above $65,000, and Ethereum is back above $3,100, with market volatility subsiding.

Traders are eagerly awaiting the approval of Bitcoin ETFs in Hong Kong, expected either on Monday or later this week. If approved, these ETFs could unlock up to $25 billion in demand, providing traders in China with easier access to digital asset exposure.

U.S. Tax Season and Halving Pressure

Prior to the geopolitical tensions, the digital asset market was already under significant selling pressure due to the U.S. tax season, which coincides with the run-up to the Bitcoin halving.

“Given that the halving occurs at a time when dollar liquidity is tighter than usual, it will add propellant to a raging firesale of crypto assets,” noted Arthur Hayes in a blog post.

Conclusion

Ethereum has managed to reclaim the $3,000 level after a sharp decline, but the cryptocurrency faces several key resistance levels on its path to recovery. If Ethereum can sustain its momentum and stay above the $3,000 support zone, it could potentially target higher resistance levels. However, failure to clear the $3,250 resistance could result in another decline.

As the crypto market awaits the Hong Kong Bitcoin ETF decision and navigates geopolitical tensions and the U.S. tax season, Ethereum's price movement will likely be influenced by these external factors. Traders should keep a close eye on the key technical levels and market sentiment to gauge Ethereum's future price action.