ETH Price Outlook: Bullish Momentum Building
As Ethereum retested the $3,450 support level recently, the price has started to move higher, currently trading above $3,500 and the 100-hourly Simple Moving Average. A break above a key bearish trend line with resistance at $3,540 on the hourly chart of ETH/USD suggests that the pair could gain bullish momentum if it manages to settle above the critical $3,680 resistance zone.
Price Movement Analysis
- ETH price underwent a downside correction below the $3,550 zone but found support near $3,459 before embarking on an upward climb.
- There was a significant move above the $3,520 resistance zone, with bulls pushing the price past the 50% Fib retracement level of the downward move from the $3,680 swing high to the $3,459 low.
- The break above the bearish trend line and the current trading position above $3,520 and the 100-hourly SMA suggest a positive trend for Ethereum price.
Resistance and Support Levels
On the upside, immediate resistance is near the $3,600 level, followed by a major hurdle at $3,630. Further resistance is anticipated near $3,680, beyond which a bullish breakout could drive the price towards $3,800 and even $3,920. A decisive move above $3,880 would open up the possibility of a rally towards $4,000.
Potential Downside Scenario
If ETH fails to surpass the $3,630 resistance, a downtrend may ensue. Initial support is seen at $3,540, followed by the $3,480 zone and a crucial support level at $3,450. A breach below $3,450 could lead to further losses towards $3,325 and potentially $3,250.
Technical Indicators Overview
- Hourly MACD: The MACD for ETH/USD is exhibiting weakening bullish momentum.
- Hourly RSI: The RSI for ETH/USD is currently above the 50 level, indicating a slightly bullish bias.
- Major Support Level: $3,450
- Major Resistance Level: $3,680
Hot Take: Stay Alert for Potential Breakout
With Ethereum showcasing signs of bullish resurgence and battling key resistance levels, traders should closely monitor the price action around the $3,630 and $3,680 levels. A successful breach above $3,680 could trigger a substantial upside move towards $4,000. Conversely, a failure to clear these hurdles could result in a renewed downtrend, with support levels at $3,540 and $3,450 coming into play. Exercise caution and stay vigilant for a potential breakout in the near term.
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