Key Takeaways:
Ethereum is currently consolidating above the critical support level of $3,250.
On the weekly chart, ETH/USD is holding steady above an important bullish trend line, with current support at $3,240.
Unless there is a weekly close below $3,200, the price appears to be preparing for a fresh rally.
Bullish Ethereum Price Prediction
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NEW DELHI (CoinChapter.com) — Ethereum (ETH) is forming a bullish pattern above $3,200. If the bulls manage to break through the resistance zone at $3,550, there could be a significant increase in price.
Ethereum Price Bounces Back from Support
In our previous technical analysis of Ethereum’s price using the weekly chart, we highlighted the possibility of a downward movement towards the support zone of $3,200-$3,250. ETH did experience a decline from the resistance zone at $4,000 and dropped below $3,320.
The price even went below the 50% Fibonacci retracement level of the significant increase from the swing low of $2,824 to the high of $3,975. However, the bulls were active around the support zone of $3,200-$3,250. They prevented further downsides and triggered a strong recovery similar to Bitcoin.
Weekly chart of Ethereum’s price | Source: ETH/USD on
TradingView.com
Ethereum tested the 61.8% Fibonacci retracement level of the significant increase from the swing low of $2,824 to the high of $3,975 and reacted positively. It is still holding firm above an important bullish trend line, with current support at $3,240 on the weekly chart.
The most recent weekly candle is bullish and suggests a potential hammer pattern. The immediate resistance is near the $3,525 level, followed by the first major resistance at $3,550. If the price surpasses the $3,550 resistance, it could gain momentum and rise towards the $3,700 resistance.
The next key resistance level could be at $3,880. A close above the $3,880 level might pave the way for a fresh test of the $4,000 hurdle. Further gains could drive the price towards the $4,250 level in the coming days.
Downside Risk for ETH?
On the flip side, Ethereum might experience another downward movement. The immediate support level is around $3,265. The first major support is visible around the $3,240 level and the trend line. The main support appears to be forming near the $3,200 level.
A break below the $3,200 support level and a weekly close below it could trigger significant bearish moves. In that scenario, the price might decline towards the $3,000 region.
The next major support level is visible around $2,825, below which the price could slide and test the 50-week simple moving average (blue) at $2,550. Further losses might lead the price towards the $2,120 support region.
Overall, the Ethereum price is indicating a strong bullish reaction from the $3,250 support level. If the bulls remain active above the $3,200 support zone, ETH could gain bullish momentum and break through the $3,550 resistance.