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Ethereum Price Prepares To Go On Another Bullish Spree, Key Support Intact

Ethereum price climbed to a new multi-month high above $3,400. ETH is consolidating like Bitcoin and seems to be setting up for another bullish spree.

  • Ethereum extended its increase above the $3,400 resistance zone.
  • The price is trading above $3,350 and the 100-hourly Simple Moving Average.
  • There is a key bullish trend line forming with support at $3,250 on the hourly chart of ETH/USD (data feed via Kraken).
  • The pair could correct lower, but dips might be limited below the $3,250 support zone.

Ethereum Price Extends Rally

Ethereum price remained in a bullish zone after it settled above the $3,000 pivot level. Bitcoin saw strong moves above the $60,000 resistance. It even rallied toward the $64,000 level. ETH also started a decent increase and cleared the $3,320 resistance.

It surged over 10% and even tested the $3,500 level. A new multi-month high was formed near $3,496 before there was a sharp decline. A low was formed at $3,111 and the price is now attempting a fresh increase. It is still above the 23.6% Fib retracement level of the upward wave from the $3,111 swing low to the $3,465 high.

Ethereum is now trading above $3,350 and the 100-hourly Simple Moving Average. There is also a key bullish trend line forming with support at $3,250 on the hourly chart of ETH/USD. The trend line is close to the 61.8% Fib retracement level of the upward wave from the $3,111 swing low to the $3,465 high.

Immediate resistance on the upside is near the $3,450 level. The first major resistance is near the $3,500 level. The next major resistance is near $3,550, above which the price might gain bullish momentum.

Ethereum Price

Source: ETHUSD on TradingView.com

If there is a move above the $3,550 resistance, Ether could even rally toward the $3,680 resistance. Any more gains might call for a test of $3,800.

Downside Correction In ETH?

If Ethereum fails to clear the $3,450 resistance, it could start a downside correction. Initial support on the downside is near the $3,380 level.

The first major support is near the $3,285 zone. The next key support could be the $3,250 zone and the trend line. A clear move below the $3,250 support might send the price toward $3,120. Any more losses might send the price toward the $3,050 level.

Technical Indicators

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

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

Major Support Level – $3,285

Major Resistance Level – $3,450

Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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