Key Takeaways
- ETH rose 1.4% in the last 24 hours and is trading above $3,200.
- The top altcoin by market capitalization may retest the psychological $3,000 level as bullish momentum stalls.
Market Momentum Slows
Bitcoin (BTC) and Ethereum (ETH) are trading near important resistance levels after a recent rally, and those barriers could prompt the leading cryptocurrencies to retest lower psychological zones before either a deeper sell-off or a renewed breakout occurs.
At the time of writing, Ether trades above $3,200 per coin, having gained about 1.4% over the past 24 hours. Despite the Federal Reserve’s third rate cut of the year, ETH failed to clear the $3,500 resistance on Friday.
The Fed’s somewhat hawkish tone around the cut shifted market sentiment toward the bearish side, driving Ether back to test the $3,100 area on Thursday. The market has since recovered, and if the rally persists, ETH could attempt to reclaim the $3,500 resistance level.
Ether May Retest $3,000 Before Moving Higher
The ETH/USD 4-hour chart displays bullish characteristics, with Ether adding nearly 4% since the start of the week. Earlier in the week the price broke above a descending trendline formed by several highs since October 7 and then jumped roughly 6.2% on Wednesday.
Following the FOMC meeting, ETH slipped back below $3,100, with a key resistance positioned near $3,500. If Ether closes its daily candle above the 50-day EMA at $3,310, it could head toward the next significant resistance near $3,592.
The 4-hour RSI sits at 54, above the neutral 50 level, indicating bullish momentum on that timeframe. The MACD produced a bullish crossover earlier in the week, further supporting a bullish bias.
However, if the daily candle fails to close above $3,310, Ether could experience another correction toward daily support around $3,017.