Ethereum Faces $3,000 Resistance as Recovery Stalls

Ethereum’s recent price action reveals a cryptocurrency caught in a technical tug-of-war between recovery momentum and significant resistance barriers. After managing to stay above the crucial $2,650 support level, ETH initiated a recovery wave that pushed the price above both $2,800 and $2,850, mirroring similar movements in Bitcoin. The bulls demonstrated strength by driving the price above the 50% Fibonacci retracement level of the downward move from the $3,058 swing high to the $2,620 low, establishing a foundation for potential further gains.

However, the recovery faces substantial headwinds as Ethereum approaches the psychologically important $3,000 resistance zone. Technical analysis of the ETH/USD pair on Kraken data reveals a key bearish trend line forming with resistance at $2,970 on the hourly chart, creating an additional barrier for bullish momentum. The current trading position above $2,840 and the 100-hourly Simple Moving Average provides some technical support, but the concentration of resistance between $2,950 and $3,000 represents a formidable challenge for continued upward movement.

Should Ethereum manage to overcome the current resistance barriers, the cryptocurrency could experience significant upward momentum. A clear move above the $2,950 level would need to contend with the 76.4% Fibonacci retracement level of the downward move from the $3,058 swing high to the $2,620 low, representing a critical technical milestone. Success at this level could pave the way for a test of the first major resistance near $3,000.

A decisive break above the $3,000 resistance level could trigger accelerated buying pressure, potentially sending the price toward the $3,050 resistance zone. Such a move would represent a complete retracement of the recent decline and could establish a new bullish trend. In this optimistic scenario, Ethereum could extend gains toward the $3,120 resistance zone, with some analysts eyeing the $3,250 level as a potential near-term target if bullish momentum sustains.

Conversely, failure to clear the $2,950 resistance could trigger a fresh decline, testing the resilience of recent gains. The initial support on the downside sits near the $2,840 level, which aligns with the current trading range and the 100-hourly Simple Moving Average. A break below this level would signal weakening bullish momentum and could prompt further selling pressure.

The first major support zone resides near $2,780, representing a critical level that must hold to prevent a more significant correction. A clear move below the $2,780 support could push the price toward the $2,740 support level, potentially accelerating declines. Any additional losses beyond this point might send Ethereum toward the $2,650 region, retesting the recent lows that initiated the current recovery wave. The next key support levels sit at $2,550 and $2,500, which would come into play only in a more severe bearish scenario.

The technical indicators for ETH/USD present a conflicting picture that reflects the current market uncertainty. The hourly MACD (Moving Average Convergence Divergence) is losing momentum in the bullish zone, suggesting that the recent recovery wave may be running out of steam. This deterioration in bullish momentum contrasts with the hourly RSI (Relative Strength Index), which remains above the 50 zone, indicating that buying pressure still outweighs selling pressure.

These mixed signals from key technical indicators underscore the delicate balance between bullish and bearish forces in the current market environment. The identification of major support at $2,800 and major resistance at $2,950 provides clear parameters for traders monitoring the ETH/USD pair’s next directional move. The convergence of these technical factors around the $2,900-$3,000 range creates a decisive battleground that will likely determine Ethereum’s short-term price trajectory.