ETH Maintains Strong Support and Sees Upside Potential
As an avid follower of Ethereum, you’ll be pleased to know that Ethereum has managed to hold onto the critical $3,365 support level. The cryptocurrency is currently trading above $3,450, with the 100-hourly Simple Moving Average acting as a strong support line. In a bullish development, there was a breakout above a significant bearish trend line with resistance around $3,460 on the hourly ETH/USD chart, sourced via Kraken.
Double-Bottom Formation and Breakout
- Ethereum recently formed a double-bottom pattern near $3,350, setting the stage for a notable price rally.
- The price surged above the $3,500 resistance level, indicating a bullish momentum.
Ethereum Price Holds Key Support
Following the formation of a double-bottom pattern around the $3,350 support level, Ethereum’s price has shown resilience and posted an upward trajectory. The digital asset outperformed Bitcoin as it surpassed the $3,450 resistance mark. Notably, ETH made a significant move above the 50% Fib retracement level from the recent downtrend, observing a positive trend in the market. Additionally, Ethereum broke a crucial bearish trend line at $3,460 on the hourly chart against the US dollar.
Currently, Ethereum is trading above $3,450 and the 100-hourly Simple Moving Average, signaling further upward movement. The price is displaying optimistic signs for additional gains, with a potential rise above the $3,535 mark. However, a notable hurdle awaits at the $3,580 level, representing a key resistance zone. If Ethereum manages to breach this resistance, it could eye further upside potential.
The first major resistance level lies near $3,650, with a successful breakout potentially propelling the price higher. Subsequently, Ethereum could target the $3,720 mark, followed by a bullish momentum towards the $3,750 level. Crossing the $3,750 hurdle might initiate a surge towards $3,880, setting the stage for a potential push to the $4,000 resistance barrier in the upcoming days.
Possible Retracement for ETH?
However, should Ethereum struggle to surpass the $3,580 resistance level, it may face a downward correction. Initial support is positioned around $3,500, followed by a significant support level at $3,450. A breach below $3,450 could lead to a retest of the $3,350 support and potentially push the price towards $3,220 in the short term.
Technical Indicators
- Hourly MACD – The Moving Average Convergence Divergence (MACD) for ETH/USD is currently indicating a bullish trend with increasing momentum.
- Hourly RSI – The Relative Strength Index (RSI) for ETH/USD has surpassed the 50 threshold, indicating a positive sentiment in the market.
Key Price Levels
- Major Support Level – $3,450
- Major Resistance Level – $3,580
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