Ethereum, the second-largest cryptocurrency, has been on a rollercoaster ride lately. After experiencing a dip, the digital asset has now embarked on a recovery journey, but it faces significant hurdles along the way.

Ethereum's Upward Momentum

Ethereum's price started to rebound from the $3,230 support zone, climbing above the $3,350 mark. However, the cryptocurrency now faces strong resistance at the $3,420 level, as well as a key bearish trend line near $3,410 on the hourly chart.

Overcoming the Resistance

For Ethereum to continue its upward trajectory, it must clear the $3,420 and $3,450 resistance levels. A close above the $3,450 mark could pave the way for the price to reach the $3,520 resistance, followed by the $3,550 level. If Ethereum manages to break above the $3,550 resistance, it might gain further traction and rise towards the $3,620 and $3,650 levels.

Potential Downside Risks

If Ethereum fails to overcome the $3,420 resistance, it could face another decline. The initial support on the downside is near $3,375, with the first major support sitting around the $3,350 zone. A clear move below the $3,350 support might push the price towards $3,280 and potentially the $3,240 level in the near term.

Technical Indicators

The hourly MACD for ETH/USD is losing momentum in the bullish zone, while the hourly RSI is now above the 50 zone, indicating a potential shift in the market sentiment.

Conclusion

Ethereum's recovery efforts are facing significant hurdles, with the $3,420 and $3,450 resistance levels proving to be formidable obstacles. The cryptocurrency's ability to overcome these challenges will be crucial in determining its future trajectory. Investors and traders will need to closely monitor the market conditions and technical indicators to make informed decisions in the ever-evolving Ethereum landscape.