The Ethereum market has been showing signs of strength, maintaining support above the crucial $3,250 zone. Recent price actions have seen Ethereum initiating a fresh surge, successfully breaking through the $3,550 resistance zone. This article delves into the details of this price movement, the technical indicators, and the potential scenarios for Ethereum’s price trajectory.
Ethereum’s Recent Price Movement
Ethereum has demonstrated resilience, starting a fresh upward movement from the $3,250 support level. This bullish momentum allowed ETH to surpass the resistance levels at $3,350 and $3,400. A significant move was noted with a break above a connecting bearish trend line, where resistance was previously pegged at $3,375, as observed on the hourly ETH/USD chart.
- Ethereum initiated a new upward trend, starting from the $3,250 support zone.
- The current trading price is above $3,500, supported by the 100-hourly Simple Moving Average.
- A breach above the bearish trend line at $3,375 marked a pivotal moment for ETH’s price movement.
- The pair has surged nearly 10% and is now consolidating gains around the $3,650 zone.
Ethereum Price Starts Fresh Surge
The Ethereum price has remained supported above $3,250, showing a fresh increase that mirrors Bitcoin’s own performance. ETH managed to break through the resistance barriers at $3,350 and $3,400. This bullish momentum was further evidenced by surpassing the bearish trend line resistance at $3,375 on the hourly ETH/USD chart. This move propelled the price beyond the $3,500 and $3,550 resistance levels, reaching a high of $3,688.
Currently, Ethereum’s price is undergoing a correction, settling below the $3,650 mark. However, it remains well-positioned above the $3,550 level and the 100-hourly Simple Moving Average. Additionally, it’s trading above the 23.6% Fibonacci retracement level from the upward movement between the $3,254 swing low and the $3,688 high.
On the upside, the price faces a significant hurdle near the $3,650 level. The first major resistance is identified near $3,685, while the primary resistance is forming around $3,720. A decisive move above the $3,720 resistance could propel the price toward the $3,840 resistance. Should this level be breached, further gains may be anticipated, potentially driving Ether toward the $3,950 or even the $4,000 mark.
Potential Downsides and Support Levels for ETH
If Ethereum fails to overcome the $3,685 resistance, it may commence another downward trajectory. Initial support on the downside is located near the $3,585 level, with the first major support positioned around the $3,550 zone. A clear decline below the $3,550 support could drive the price down to the 50% Fibonacci retracement level from the $3,254 swing low to the $3,688 high, targeting $3,470. Further losses might see the price moving toward the $3,350 support level in the near term, with the next crucial support sitting at $3,250.
Technical Indicators
Hourly MACD: The MACD for ETH/USD is gaining momentum in the bullish zone, indicating continued positive pressure on the price.
Hourly RSI: The RSI for ETH/USD is currently above the 50 mark, suggesting a favorable condition for further price increases.
Major Support Level: $3,485
Major Resistance Level: $3,685
