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TA: Ethereum Could Stage Strong Rally If It Clears This Key Resistance

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Ethereum gained pace above the $3,080 resistance against the US Dollar. ETH price could continue higher if there is a clear move above the $3,150 resistance.

  • Ethereum remained well bid and climbed above the $3,080 and $3,100 levels.
  • The price is now trading above $3,080 and the 100 hourly simple moving average.
  • There is a key bullish trend line forming with support near $3,080 on the hourly chart of ETH/USD (data feed via Kraken).
  • The pair must clear $3,130 and $3,180 to start another increase in the near term.

Ethereum Price Remains Supported

Ethereum remained well bid and extended increase above the $3,080 resistance. ETH even broke the $3,130 resistance zone and settled above the 100 hourly simple moving average.

It even spiked towards the $3,180 level and traded as high as $3,172. Recently, there was a downside correction below the $3,130 level. Ether price corrected below the 23.6% Fib retracement level of the upward move from the $2,880 swing low to $3,172 high.

The price tested the $3,050 support zone and the 100 hourly simple moving average. There is also a key bullish trend line forming with support near $3,080 on the hourly chart of ETH/USD.

Ethereum Price

Source: ETHUSD on TradingView.com

On the upside, an initial resistance is seen near the $3,130 level. The next major resistance is near the $3,170 and $3,180 levels. A close above the $3,180 level might start a strong upward move in the near term. In the stated case, ether might rise towards the $3,250 level. The next major resistance could be near the $3,280 or $3,320.

Dips Supported in ETH?

If ethereum fails to gain pace above the $3,130 level, it could start a downside correction. An initial support on the downside is near the $3,080 zone and the trend line.

The first major support is near the $3,060 level and the 100 hourly simple moving average. The next major support is near the $3,025 level. It is close to the 50% Fib retracement level of the upward move from the $2,880 swing low to $3,172 high. If there is a downside break below the $3,025 support, the price could start another decline.

Technical Indicators

Hourly MACDThe MACD for ETH/USD is now gaining pace in the bullish zone.

Hourly RSIThe RSI for ETH/USD is now above the 50 level.

Major Support Level – $3,025

Major Resistance Level – $3,130

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