Ethereum Price Consolidates Gains Above $3,400 as Bulls Eye Further Upside Potential
Ethereum’s price has found support above the $3,350 level and has initiated another upward movement, mirroring Bitcoin’s recent surge. Breaking above the crucial $3,400 level, Ethereum has set the pace for further gains. Currently, the bulls remain active above the $3,420 level.
Ethereum is demonstrating positive signs of consolidation above $3,400 and investors are hopeful for a potential breakthrough above the $3,500 resistance zone. It is worth noting that the price is currently trading above the 100-hourly Simple Moving Average, indicating a favorable trend.
On the hourly chart of ETH/USD, a prominent bullish trend line is taking shape, with significant support established at the $3,420 level. This development is encouraging, as it suggests that Ethereum may be preparing to surge towards the $3,650 and $3,800 levels in the near future.
Ever since Ethereum formed a base above $3,350, its price has been steadily increasing, in a similar fashion to Bitcoin. By surpassing the $3,400 level, Ethereum has laid the groundwork for further upside potential. Moreover, a clear rally above the 50% Fibonacci retracement level from the swing high of $3,519 to the low of $3,305 has been observed.
After trading above $3,450 and the 100-hourly Simple Moving Average, Ethereum is displaying positive indications above the 76.4% Fibonacci retracement level from the downside correction. Immediate resistance on the upside is expected near the $3,500 level, followed by major resistance at $3,520.
If Ethereum successfully breaks through the $3,520 resistance, it could gain significant bullish momentum, potentially targeting the $3,650 level. Subsequently, the next level of interest would be around the $3,720 resistance. Notably, any further gains could test the $3,800 threshold.
However, if Ethereum fails to clear the aforementioned $3,520 resistance, a downside correction could be initiated. In the event of a decline, the initial support level lies at $3,420, along with the established trend line.
The first major support is located near the $3,400 zone or the 100 hourly Simple Moving Average. Further significant support is expected at the $3,350 zone. A decisive break below the $3,350 support may propel the price towards $3,320, with the possibility of further losses leading to the $3,150 level.
Technical indicators for Ethereum are displaying promising signs. The hourly MACD for ETH/USD is gaining momentum in the bullish zone, while the hourly RSI is currently above the 50 level.
Disclaimer: This article is meant to inform readers and should not be considered financial advice. Trading cryptocurrencies carries a high level of risk, and readers are advised to do their own research and consult with a financial advisor before making any investment decisions.
Key Highlights:
– Ethereum consolidates gains above $3,400 and shows signs of further upside potential.
– Bulls are currently active above the $3,420 level.
– A significant bullish trend line is forming with support at $3,420 on the hourly chart of ETH/USD.
– If Ethereum surpasses the $3,520 resistance, it could gain strong bullish momentum, potentially targeting the $3,650 and $3,800 levels.
– Failure to break the $3,520 resistance may result in a downside correction, with immediate support at $3,420 and the trend line.
– Technical indicators, such as the MACD and RSI, support the bullish outlook for Ethereum.
Analyst comment
This news is evaluated as positive. As an analyst, I predict that the market will likely experience further upward movement, with Ethereum potentially targeting the $3,650 and $3,800 levels if it breaks the $3,520 resistance. However, a failure to break this resistance could lead to a downside correction, with support at $3,420 and the established trend line. Technical indicators support the bullish outlook for Ethereum.
