Ethereum Faces Crucial Resistance Test Above $2,950

Ethereum's price has been on the rise after breaking above $2,950, but it now faces a critical resistance zone near $3,050 that could determine whether the rally continues or stalls.

The cryptocurrency initiated a recovery wave from its recent low of $2,775, mirroring Bitcoin's recent price action. It broke through resistance levels at $2,850 and $2,880, pushing beyond the 50% Fibonacci retracement level of its decline from $3,175 to $2,775.

Ethereum also cleared a bearish trend line with resistance at $2,920 on the hourly chart of ETH/USD. The price is now trading above $2,950 and the 100-hourly simple moving average, establishing support above previously contested levels.