Ethereum climbed above $2,950 as buyers attempted to sustain upward momentum following a recovery from recent lows. The cryptocurrency now faces a critical resistance zone near $3,050 that could determine whether the rally extends or stalls.

What Happened: Recovery Attempt

Ethereum initiated a recovery wave from $2,775, mirroring Bitcoin's recent price action. The digital asset 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.

The price also cleared a bearish trend line with resistance at $2,920 on the hourly chart of ETH/USD.

Ethereum now trades above $2,950 and the 100-hourly simple moving average, establishing support above previously contested levels.

If the cryptocurrency extends gains, it will encounter resistance near $3,020 and the 61.8% Fibonacci retracement level before reaching the pivotal $3,050 zone. A break above $3,080 could open a path toward $3,150, with further upside potentially reaching $3,220 or $3,250.

Also Read: Bitcoin Faces Volatility Risk As Yen Plunges To Record Lows Despite Japan Rate Hike

Why It Matters: Technical Threshold

The $3,050 resistance represents a critical technical barrier that could define Ethereum's near-term trajectory.

Failure to breach this level may trigger a pullback toward support at $2,950, with further downside risk extending to $2,915 or $2,880.

The hourly MACD indicator shows declining momentum in bullish territory, while the RSI holds above 50, suggesting buyers maintain control but face weakening conviction. A breakdown below $2,915 could accelerate losses toward $2,840 or the key $2,800 support level.

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