A Springboard for More Gains?

Ethereum’s price is demonstrating resilience, maintaining its position above the $3,500 threshold. As it consolidates, there is a potential for Ethereum to aim for a rise beyond the $3,600 resistance zone. This analysis delves into the current market trends and technical indicators for Ethereum.

Ethereum recently initiated a downward correction from the $3,685 zone.

The price remains above $3,520 and the 100-hourly Simple Moving Average.

A bearish trend line is developing, with resistance at $3,600 on the hourly chart of ETH/USD, based on data from Kraken.

The pair could potentially resume its upward momentum if it surpasses the $3,600 resistance zone.

Ethereum Price Eyes Fresh Surge

Ethereum’s price has shown robust support above the $3,250 mark, beginning a new upward trajectory that has outpaced Bitcoin. The bulls have successfully driven the price beyond the $3,500 and $3,550 resistance levels.

The upward momentum saw Ethereum’s price surge past the $3,650 mark, reaching a peak at $3,688. However, the price experienced a slight pullback, dipping below the $3,650 and $3,620 levels. This decline included a minor breach of the 23.6% Fibonacci retracement level from the $3,255 swing low to the $3,688 high.

Currently, Ethereum’s price is trading above $3,520 and the 100-hourly Simple Moving Average. On the upward trajectory, the price is encountering resistance near the $3,600 level. Additionally, a bearish trend line is forming with resistance at $3,600 on the hourly ETH/USD chart.

The initial significant resistance is positioned near the $3,650 mark, with the primary resistance forming around $3,680. A decisive move above the $3,680 resistance could propel the price towards the $3,750 resistance level. Breaking above the $3,750 mark could herald further gains, potentially driving Ether towards the $3,880 resistance zone or even reaching $3,920.

Potential Downside for ETH?

Should Ethereum fail to break through the $3,650 resistance, it might initiate another downward trend. The initial support level on the downside is near the $3,540 mark, with the first major support situated around the $3,500 zone.

If the price slips below the $3,500 support, it could descend towards the 50% Fibonacci retracement level of the upward movement from the $3,254 swing low to the $3,688 high, positioned at $3,470. Additional losses could drive the price towards the $3,400 support level in the short term, with the next critical support sitting at $3,350.