Key conclusions
- ETH has gained 1.4% in the last 24 hours and is now trading above $3,200.
- The market’s second-largest crypto by market capitalization could retest the psychological $3,000 level as bullish momentum stalls.
Momentum stalls across the market
Bitcoin (BTC) and Ethereum (ETH) are trading around key resistance levels after modest gains over the past 24 hours. These resistance zones could push major cryptocurrencies to retest lower psychological levels before either making a stronger sell-off or attempting a successful breakout.
At the time of writing, Ether trades above $3,200 per coin, having added 1.4% to its value in the past day. It failed to clear the $3,500 resistance on Friday despite the Federal Reserve cutting its benchmark rate for the third time this year.
The Fed’s aggressive rate cut shifted market sentiment toward risk-on moves, but Ether briefly retraced to around $3,100 on Thursday. The market recovered afterward, and if the rally continues Ether could retake the $3,500 resistance level.
Ether could retest $3,000 before moving higher
The 4-hour ETH/USD chart remains constructive, with Ether up nearly 4% since the start of the week. Price broke the descending trendline formed by lower highs since October 7 earlier this week and climbed 6.2% on Wednesday.
However, Ether dipped below $3,100 after the FOMC meeting, with a key resistance area around $3,500. If Ether closes its daily candle above the 50-day EMA at $3,310, it could push toward the next major resistance near $3,592.
A 4-hour RSI reading of 54 sits above the neutral 50 level, suggesting bullish momentum on that timeframe. The MACD displayed a bullish crossover earlier this week, supporting the upward bias.
Conversely, if the daily candle fails to close above $3,310, Ether could face another correction toward daily support around $3,017.