Ethereum Eyes Critical Resistance After 77% Surge From Lows

MakroVision Analytics reports a recovery in Ethereum's price structure, validating their earlier bullish outlook.

Crypto analysis firm MakroVision Analytics is reporting a recovery in Ethereum's price structure, validating their earlier bullish outlook.

Earlier this week, MakroVision closely examined Ethereum's technical landscape, highlighting a crucial low zone that could decide the medium-term trend of ETH.

As shared previously by MakroVision:

The implication of losing the low zone at $1,295–$1,525 would have been bearish and could have set up a return to lower levels of support.

The fib confluence zone at $2,405 – $2,465 is now a key resistance zone for traders to keep in mind.

A break above this area could open up the way for a move towards the central “orange” zone, which is now seen at $2,644 – $2,745.

The fib confluence zone also closely aligns with the rising wedge resistance that has been in play since the lows of 2022.

Should a pullback occur, then the zone at $1,944 remains a structurally important level of support. Above this, traders are looking at $2,145.

Next stage of Ethereum's recovery

After a steep decline that saw ETH drop to lows of $1,444, the world's second-largest cryptocurrency has since rebounded by 77%.

This strong recovery has seen the price of Ethereum closely align with the projected scenario shared by MakroVision.

As of Thursday morning, Mid Point is reporting that Ethereum has risen to lows of $1,400. From there, it has surged more than 77%, reaching a high point of $2,464.

This move has taken the price of ETH to the fib confluence zone that serves as a key resistance, a level that MakroVision previously noted could be decisive for the medium-term trend.

In a brief update, MakroVision said the following:

As shared yesterday, the low zone at $1,295–$1,525 was crucial for keeping the bullish outlook valid.

A break below this area would have favored further weakness in the short-term.

However, as we can see, the bulls were able to hold support and now the fib confluence zone at $2,405 – $2,465 is providing resistance.

A break above this zone could open up the way for a move towards the central “orange” zone, which is now seen at $2,644 – $2,745.

The fib confluence zone also closely aligns with the rising wedge resistance that has been in play since the lows of 2022.

Earlier this week, MakroVision's analysis suggested that if the price of Ethereum were to break down and fall below the crucial low zone, it could have implications for the broader crypto market.

However, with the recent price action keeping the low zone intact and paving the way for a move through the fib confluence zone, the macro analysis firm remains optimistic on its bullish outlook for ETH.

News data source: kdj.com

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