Ethereum Price Upside Story Isn’t Finished Yet, Charts Suggest

Overview

Ethereum has initiated a steady upward trajectory above $3,200, with current trading suggesting potential for further gains. As the price consolidates, there are indications that it might target levels above $3,300, reflecting a bullish sentiment among traders.

Recent Price Movements

Ethereum’s price began its upward movement after settling above the $3,120 level. This ascent was characterized by a significant increase past both the $3,200 and $3,220 resistance levels. The bullish momentum saw the price reach nearly $3,300, where a high of $3,299 was recorded. Following this peak, Ethereum has entered a phase of consolidation, showing a slight decline as it tested the 50% Fibonacci retracement level from the recent low of $3,181 to the high of $3,299.

Currently, Ethereum is trading above $3,220 and the 100-hourly Simple Moving Average, indicating a potentially strong support level. A key bullish trend line is also forming, establishing support at $3,200 on the hourly ETH/USD chart. This trend line is critical, as it suggests that if the price remains above this level, Ethereum could continue its upward trajectory.

The immediate resistance is noted around the $3,265 level, while further resistance can be observed at $3,280 and $3,300. A successful move above the $3,300 resistance may lead to further gains, potentially pushing the price toward the $3,350 resistance level. Should Ethereum clear this zone, it might open the door for even more significant increases, with projections suggesting a rise towards the $3,450 or even $3,500 resistance zones in the near future.

Potential Downside Risks

However, if Ethereum fails to overcome the $3,265 resistance, it may face a potential decline. Initial support on the downside is located near the $3,220 level, coinciding with the 61.8% Fibonacci retracement level of the recent increase. The first major support is identified near the $3,200 zone, where the bullish trend line also resides. A clear breach of this support could lead to further downward movement, potentially targeting the $3,120 support level. In the event of continued losses, the price could approach the $3,050 region.

Technical Indicators

• Hourly MACD: The MACD for ETH/USD is losing momentum within the bullish zone, indicating a potential weakening of upward momentum.
• Hourly RSI: The RSI is currently above the 50 zone, suggesting a prevailing bullish sentiment.

From author

The current technical setup for Ethereum shows a delicate balance between bullish and bearish pressures. With crucial support and resistance levels in place, the coming hours and days will be pivotal in determining the short-term trajectory of the asset. Traders and investors are advised to closely monitor these levels to gauge market sentiment effectively.

Impact on the crypto market

• Ethereum’s price movements could influence overall market sentiment, especially for altcoins.
• A successful breach above the $3,300 level may lead to increased buying activity, potentially causing market-wide rallies.
• Conversely, a decline below the $3,200 support could trigger selling pressure, impacting other cryptocurrencies negatively.
• The consolidation phase could result in heightened volatility as traders react to price movements around key support and resistance levels.
• Monitoring the performance of Ethereum may provide insights into broader market trends, especially in relation to Bitcoin’s movements.