Key takeaways
- ETH is up 1.4% in the last 24 hours and is trading above $3,200.
- The largest altcoin by market capitalization may retest the $3,000 psychological level as bullish momentum eases.
Market momentum stalls
Bitcoin (BTC) and Ethereum (ETH) are hovering around key resistance zones after a brief rally over the past 24 hours. These resistance areas could prompt a pullback to lower psychological support levels before the market either drops further or attempts a decisive breakout.
At the time of writing, Ether trades above $3,200 after gaining roughly 1.4% in the past day. It was unable to clear the $3,500 resistance on Friday, despite the Federal Reserve cutting its benchmark interest rate for the third time this year.
The Fed’s rate cut came with hawkish guidance, shifting sentiment toward caution and pushing Ether to retest around $3,100 following the FOMC announcement. The market has since recovered some ground, and if bullish momentum resumes, Ether could challenge the $3,500 level again.
Ether may retest $3,000 before moving higher
The ETH/USD 4-hour chart shows a bullish structure, with Ether gaining nearly 4% since the beginning of the week. Earlier this week, price broke above a descending trendline formed from multiple highs since October 7 and advanced about 6.2% on Wednesday.
Following the FOMC meeting, Ether dipped below $3,100, while a significant resistance sits around $3,500. A daily close above the 50-day exponential moving average (around $3,310) would support a continuation toward the next major resistance near $3,592.
Momentum indicators on the 4-hour timeframe are mildly bullish: the Relative Strength Index (RSI) sits around 54, above the neutral 50 line, and the Moving Average Convergence Divergence (MACD) produced a bullish crossover earlier in the week.
Conversely, a failure to close the daily candle above $3,310 could invite another correction, with the daily support level near $3,017 as a likely target before any renewed upside attempt.