Key Points to Note:
Ethereum initiated a significant uptrend above the $3,350 mark.
ETH/USD broke through a crucial downtrend line with resistance at $3,350 on the daily chart.
The current challenge lies in overcoming strong resistance near $3,530 and the 50-day simple moving average.
New Delhi (Coinchapter.com):
The price of Ethereum (ETH) rebounded strongly from the $2,800 support level, prompting a fresh uptick. For further advancement, ETH needs to surpass the $3,530 resistance.
Key Resistance Ahead for Ethereum Price Rally
Following unsuccessful attempts by bears to drive Ethereum below the critical support of $2,800, the price reacted positively. It recorded a steady increase above the $3,000 resistance zone, similar to Bitcoin’s climb above $60,000. Bulls managed to elevate the price beyond the $62,000 resistance mark.
ETH cleared a significant bearish trend line with resistance at $3,350 on the daily chart. Additionally, it surpassed the 50% Fibonacci retracement level of the notable decline from the $3,975 peak to the $2,815 low.
Daily Chart of Ethereum Price | Source:
ETH to USD
on TradingView.com
However, bulls are currently encountering robust resistance around the $3,530 level and the 50-day simple moving average (depicted in blue). The last three to four candles clearly indicate that the 50-day moving average is acting as a barrier, limiting further upside potential.
In case of a downward correction, support may be found around the $3,380 level. The primary support is situated at $3,350. The principal upward trend support is now forming near the $3,200 area, a region that has seen multiple touches and recently facilitated a breakout.
A daily close below the $3,200 support zone could expose the market to greater downside risks. In such a scenario, the price might test the $3,080 level, followed by significant support at $3,000. Further declines could potentially push Ether towards the $2,800 mark.
Possible Fresh Upsurge in ETH Price?
Conversely, Ethereum could surpass the 50-day simple moving average (blue) to sustain upward momentum. The initial major resistance is located near $3,530 and the 61.8% Fibonacci retracement level of the decline from $3,975 to $2,815.
Subsequent resistance awaits at approximately $3,700. A clear breakthrough above $3,700 might pave the way for a move towards $3,880. Should bulls manage to breach the $3,800 resistance, a renewed rally could ensue.
In such a scenario, the price might ascend towards $4,000. Further gains could potentially drive Ethereum towards the $4,200 zone in the near future.
Overall, Ethereum’s price is consolidating its gains below the $3,530 resistance level. To sustain upward movement, ETH must establish a firm foothold above $3,530 and the 50-day simple moving average (depicted in blue).