Important points
- ETH has risen 1.4% in the past 24 hours and is currently trading above $3,200.
- The top altcoin by market cap could retest the $3,000 psychological level as its bullish momentum stalls.
Market momentum stalls
Bitcoin (BTC) and Ethereum (ETH) are currently trading near key resistance levels after rising over the past 24 hours. Looking at the resistance levels, the major cryptocurrencies may retest lower psychological territory before pitching even harder or successfully breaking out.
As of this writing, Ether is trading above $3,200 per coin after adding 1.4% to its value in the past 24 hours. Despite the Federal Reserve cutting its benchmark interest rate for the third time this year, it failed to break above the $3,500 resistance level on Friday.
However, the Fed’s hawkish interest rate cuts turned market sentiment bearish, forcing Ether to retest the $3,100 level on Thursday. The market is currently rebounding, and if the rally continues, Ether could regain the $3,500 resistance.
Ether May Retest $3,000 Before Rising Further
The 4-hour chart of ETH/USD is bullish and efficient as the value of Ether has increased by nearly 4% since the beginning of the week. Ether price broke above the downtrend line (marked by multiple highs since October 7) earlier this week and was up 6.2% on Wednesday.
However, after the FOMC meeting, the price fell below $3,100 and the main resistance level was set around $3,500. If Ether closes the daily candlestick above the 50-day EMA at $3,310, it could move higher toward the next major resistance level at $3,592.
RSI 54 is above neutral 50 indicating bullish momentum on 4-hourly. The Moving Average Convergence Divergence (MACD) showed a bullish crossover earlier this week, confirming the bullish bias.
However, if the daily candlestick fails to close above $3,310, Ether could face further correction towards the daily support level of $3,017.
