The Ethereum market is currently experiencing a notable uptrend as the price moves beyond the critical $3,220 mark. With investors eyeing further gains, Ethereum is positioned to surpass the significant $3,350 resistance level, potentially leading to even higher values.
Key Highlights
- Ethereum has initiated a new upward trend, breaking past the $3,220 and $3,300 levels.
- The current trading value of ETH is above $3,250, maintaining a trajectory above the 100-hourly Simple Moving Average.
- A short-term contracting triangle with resistance at $3,360 is evident on the ETH/USD hourly chart, based on Kraken data.
- The pair is likely to gain bullish momentum if it successfully breaks through the $3,385 resistance zone.
Ethereum Price Regains Traction
After finding solid support above the $3,000 threshold, Ethereum’s price has embarked on a renewed upward journey, mirroring Bitcoin’s recent movements. The digital asset has managed to navigate past crucial resistance levels at $3,150 and $3,220. The resulting bullish momentum propelled the price beyond the $3,300 benchmark, marking a gain of over 10% and reaching as high as $3,387.
Currently, Ethereum is consolidating its gains, comfortably trading above the 23.6% Fibonacci retracement level from the recent upswing between the $3,036 low and the $3,387 high. The price is stable above $3,220, bolstered by the 100-hourly Simple Moving Average.
On the upper side, Ethereum faces resistance around the $3,350 level, with a short-term contracting triangle forming resistance at $3,360 on the hourly ETH/USD chart. The initial major resistance looms near $3,385, with a more significant barrier forming around $3,420. Should Ethereum decisively break through the $3,420 resistance, it may pave the way for a rally toward $3,550.
An upward breakout beyond the $3,550 resistance could signal further gains in subsequent sessions, potentially driving Ether towards the $3,650 resistance zone or even $3,880.
Potential Downside for Ethereum?
In the event Ethereum struggles to overcome the $3,350 resistance, a downward correction may ensue. The first line of defense on the downside is situated near the $3,300 mark, with a more substantial support level at approximately $3,250.
A decisive decline below the $3,250 support could exert downward pressure, potentially pushing the price back toward $3,220 or the 50% Fibonacci retracement level of the recent move from the $3,036 low to the $3,387 high. Further losses might see Ethereum’s price retreat to the $3,150 support level in the short term, with additional support found at $3,050.
Technical Indicators
Hourly MACD: The MACD for ETH/USD is gaining momentum, indicating a robust position in the bullish zone.
Hourly RSI: The RSI for ETH/USD is currently positioned above the 50 zone, suggesting positive market sentiment.
Major Support Level: $3,250
Major Resistance Level: $3,385
