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TA: Ethereum Gains Traction, A Strengthening Case For More Gains

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Ethereum gained over 5% and broke the $3,250 resistance against the US Dollar. ETH price is rising and could accelerate higher above $3,350.

  • Ethereum started a strong increase above the $3,150 resistance.
  • The price is now trading above $3,250 and the 100 hourly simple moving average.
  • There is a crucial bullish trend line forming with support near $3,160 on the hourly chart of ETH/USD (data feed via Kraken).
  • The pair is consolidating near $3,300 and might extend rally in the near term.

Ethereum Price Eyes More Upsides

Ethereum formed a base above the $3,050 support zone. ETH started another increase and cleared the $3,150 resistance.

There was also a clear move above the $3,250 level and the price settled above the 100 hourly simple moving average. It traded to a new multi-week high at $3,340 and is currently consolidating gains. It is trading above the 23.6% Fib retracement level of the recent wave from the $3,130 swing low to $3,340 high.

Besides, there is a crucial bullish trend line forming with support near $3,160 on the hourly chart of ETH/USD. On the upside, an initial resistance is near the $3,350 level.

Ethereum Price

Source: ETHUSD on TradingView.com

The next major resistance is near the $3,400 level. Ether price could start another surge if there is a clear move above the $3,400 resistance. In the stated case, the price may perhaps test the $3,500 level. Any more gains might call for a move towards the $3,620 resistance zone in the coming sessions.

Dips Limited in ETH?

If ethereum fails to start a fresh increase above the $3,350 level, it could start a downside correction. An initial support on the downside is near the $3,290 zone. The next major support is near the $3,235 level. It is near the 50% Fib retracement level of the recent wave from the $3,130 swing low to $3,340 high.

The main support is near the $3,200 zone and the trend line. A downside break below the $3,200 support zone might push the price further lower. In the stated case, the price might drop to $3,050.

Technical Indicators

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

Hourly RSIThe RSI for ETH/USD is now in the overbought zone.

Major Support Level – $3,235

Major Resistance Level – $3,350

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