Ethereum Price Surges Above $3,400 Resistance
The price of Ethereum has continued to rise, surpassing the $3,400 resistance zone. It is currently trading above $3,350 and the 100-hourly Simple Moving Average (SMA). There is a key bullish trend line forming with support at $3,250 on the hourly chart of ETH/USD.
Strong Bullish Momentum
Ethereum’s price remained in a bullish zone after breaking through the $3,000 pivot level. This surge was accompanied by strong moves from Bitcoin, which broke above the $60,000 resistance and rallied towards $64,000. Ethereum also experienced a decent increase and cleared the $3,320 resistance.
- ETH surged over 10% and reached as high as $3,500.
- A new multi-month high was formed near $3,496.
- However, there was a sharp decline and a low was formed at $3,111.
Current Price Action
Ethereum is now attempting to make a fresh increase after hitting the swing low. It is still above the 23.6% Fibonacci retracement level of the upward wave from the swing low to the high at $3,465. The price is currently trading above $3,350 and the 100-hourly SMA.
- A key bullish trend line is forming with support at $3,250 on the hourly chart of ETH/USD.
- The trend line aligns with the 61.8% Fibonacci retracement level.
Possible Resistance Levels
If Ethereum manages to clear the current resistance levels, it could experience further gains. The immediate resistance on the upside is near $3,450, followed by the major resistance at $3,500. If the price surpasses these levels, it might gain bullish momentum and rally towards $3,550.
Possible Downside Correction
However, if Ethereum fails to break the $3,450 resistance, a downside correction may occur. The initial support on the downside is near $3,380. The first major support zone is around $3,285, followed by the key support level at $3,250 and the trend line. If the price drops below this support level, it could decline towards $3,120 or even $3,050.
Technical Indicators
The MACD for ETH/USD is gaining momentum in the bullish zone, indicating a positive trend. Additionally, the RSI for ETH/USD is now above the 50 level.
Conclusion: Upside Potential for Ethereum Price
Ethereum’s price has shown significant strength and continues to trade above key support levels. The current trend indicates that there is potential for further gains in the near future.
Possible Scenarios:
- If Ethereum breaks above the $3,450 resistance level:
- It could rally towards $3,550 and even test the $3,680 resistance.
- Further gains might lead to a test of $3,800.
- If Ethereum fails to break the resistance:
- A downside correction may occur.
- The initial support is at $3,380.
- Major support levels are at $3,285 and $3,250.
- If the price drops below $3,250, it could decline towards $3,120 or $3,050.
Hot Take: Ethereum’s Bullish Momentum Continues
The price of Ethereum has extended its rally and is currently trading above the $3,400 resistance level. With strong bullish momentum and key support levels in place, there is potential for further upside gains. However, if the resistance level holds, a downside correction may occur. Traders should closely monitor the price action and key support and resistance levels for potential trading opportunities.
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