Key Points to Remember:
– Ethereum has experienced a surge in price and has surpassed the $3,350 resistance level.
– A bearish trend line with resistance at $3,350 has been cleared on the daily chart.
– The price is currently facing resistance near $3,530 and the 50-day simple moving average.
New Delhi(Coinchapter.com):
Ethereum (ETH) has seen a significant increase in price after finding strong support near $2,800. In order to continue its upward momentum, ETH needs to overcome the resistance at $3,530.
Resistance Ahead for Ethereum Price Rally
Following failed attempts by bears to push Ethereum below the crucial support level of $2,800, the price has reacted positively. It has steadily risen above the $3,000 resistance zone, much like Bitcoin’s surge above $60,000. The bulls have successfully pushed the price above the $62,000 resistance zone.
ETH has cleared a bearish trend line with resistance at $3,350 on the daily chart. Furthermore, it has surpassed the 50% Fib retracement level of the significant decline from the $3,975 swing high to the $2,815 low.
Ethereum price daily chart | Source: ETH to USD on TradingView.com
However, the bulls are currently encountering strong resistance near the $3,530 level and the 50-day simple moving average (blue line). The recent 3-4 candles indicate that the 50-day simple moving average is acting as an obstacle, impeding further upward movement.
If there is a downward correction, the price may find support near the $3,380 level. The first major support level is located around $3,350. The primary uptrend support is now forming near the $3,200 region, which is a multi-touch zone and the site of a recent breakout.
A daily close below the $3,200 support zone could lead to a larger decline, with the price potentially testing the $3,080 level. The next significant support lies near $3,000, and further losses may drive Ether towards the $2,800 support level.
Possible Surge in ETH Price?
On the other hand, Ethereum could surpass the 50-day simple moving average (blue line) to continue its upward trajectory. The first major resistance level is located near $3,530, along with the 61.8% Fib retracement level of the significant decline from the $3,975 swing high to the $2,815 low.
The subsequent resistance level is around $3,700. A clear breakthrough above $3,700 could pave the way for a move towards the $3,880 level. If the Ethereum bulls manage to push the price above the $3,800 resistance, it could trigger a fresh rally.
In this scenario, the price could rise towards the $4,000 level, with further gains potentially leading to a move towards the $4,200 zone in the near future.
Overall, Ethereum’s price is currently consolidating its gains below the $3,530 resistance level. In order to continue its upward movement, ETH must successfully settle above $3,530 and the 50-day simple moving average (blue line).