Ethereum price climbed further higher and broke the $3,000 resistance. ETH is still showing positive signs and might extend gains toward $3,120.
- Ethereum extended its rally above the $2,980 and $3,000 levels.
- The price is trading above $3,000 and the 100-hourly Simple Moving Average.
- There is a key bullish trend line forming with support at $2,950 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could continue to move up toward the $3,120 resistance zone.
The upward momentum of Ethereum’s price continues to gain traction, extending its rally.
Ethereum’s price established a foundation above the $2,850 mark, initiating another uptrend. Breaking through the $2,920 resistance area, ETH showcased superior performance compared to Bitcoin. Ultimately, the price surpassed the $3,000 threshold.
Marking a new multi-week peak at around $3,032, the price is presently consolidating its recent gains. Ether remains steady close to the 23.6% Fibonacci retracement level, calculated from the recent upswing between the $2,876 low and the $3,032 high. An essential bullish trend line is taking shape, providing support at $2,950 on the hourly ETH/USD chart.
As Ethereum trades above $3,000 and the 100-hourly Simple Moving Average, immediate upside resistance is at the $3,040 level. The initial significant hurdle lies around $3,065, followed by a subsequent major resistance at $3,120. A breach beyond this level could propel the price to test the $3,220 resistance zone.
Should the price surmount the $3,220 resistance, Ethereum could potentially experience a rally aiming for the $3,350 resistance. Further upward momentum might prompt a test of the $3,500 level.
Is Ethereum Poised for a Downside Correction?
If Ethereum faces difficulty surpassing the $3,040 resistance, a potential downside correction might ensue. Initial support in such a scenario is anticipated around the $2,995 level.
The primary support level is situated near the $2,950 mark, coinciding with the trend line zone. This level aligns closely with the 50% Fibonacci retracement level of the recent upswing, stretching from the $2,876 swing low to the $3,032 high. Subsequently, the $2,910 zone emerges as another crucial support. A clear breach below $2,910 could propel the price towards $2,880 or the 100-hourly Simple Moving Average. The key support level to watch is $2,850, and further losses may lead the price towards the $2,720 level in the ensuing sessions.
Analyzing the technical indicators, the hourly MACD for ETH/USD is showing an increasing bullish momentum, and the hourly RSI has surpassed the 50 level, indicating a positive trend.
Major Support Level: $2,950
Major Resistance Level: $3,040