Key takeaways
- ETH is up 1.4% in the last 24 hours and is now trading above $3,200.
- The leading altcoin by market cap could retest the $3k psychological level as the bullish momentum stalls.
Market momentum stalls
Bitcoin (BTC) and Ethereum (ETH) are currently trading around key resistance levels after rallying over the past 24 hours. The resistance levels could see the leading cryptocurrencies retest lower psychological areas before either dumping harder or embarking on a successful breakout.
At press time, Ether is trading above $3,200 per coin after adding 1.4% to its value in the last 24 hours. It failed to surpass the $3,500 resistance level on Friday despite the Federal Reserve reducing its benchmark interest rate for the third time this year.
However, the Fed delivered a hawkish rate cut, causing the market sentiment to shift bearish and Ether to retest the $3,100 level on Thursday. The market has now bounced back, and Ether could reclaim the $3,500 resistance if the rally continues.
Ether could retest $3k before rallying higher
The ETH/USD 4-hour chart is bullish and efficient, as Ether has added nearly 4% to its value since the start of the week. Ether’s price broke above the descending trendline (drawn by joining multiple highs since October 7) earlier this week and rose by 6.2% on Wednesday.
However, it declined below $3,100 following the FOMC meeting, with a key resistance level set around $3,500. If Ether closes its daily candle above the 50-day EMA at $3,310, it could rally towards the next major resistance at $3,592.
The RSI of 54 is above the neutral 50, indicating a bullish momentum on the 4-hour timeframe. The Moving Average Convergence Divergence (MACD) showed a bullish crossover earlier this week, supporting a bullish bias.
However, if the daily candle fails to close above $3,310, Ether could face another correction towards the daily support level at $3,017.
Credit: Source link
