Ethereum Approaches Next Breakout, Why ETH Could Rise Further


Ethereum gains pace above the $3,350 resistance against the US dollar. The ETH price could continue to climb and could even reach the $3,500 level.

Ethereum is rising steadily and it is trading above the $3,350 resistance. The price is now trading above $3,350 and the 100 hourly simple moving average. A key contracting triangle is forming with resistance near $3,400 on the ETH/USD hourly chart (data feed via Kraken). The pair may see further gains if it clears the USD 3,400 and USD 3,420 resistance levels.

Ethereum Price Targets $3,500

Ethereum formed a base above the $3,120 support zone. ETH started rising again and cleared the $3,250 resistance.

There was also a marked move above the $3,350 level and the price moved above the 100 hourly simple moving average. It traded to a new multi-week high at $3,431 and is currently consolidating gains. There was a small move below the $3,400 level.

Ether price fell below the 23.6% Fib retracement level from its recent rise from the $3,130 swing low to $3,431 high. On the upside, an initial resistance is near the $3,400 level.

An important contracting triangle is also forming with resistance near $3,400 on the ETH/USD hourly chart. The next major resistance is near the $3,420 level. Ether price could spark another rise if there is a clear move above the USD 3,420 resistance.

Source: ETHUSD on TradingView.com

A close above the USD 3,420 level could pump the price towards the USD 3,500 level. Further gains may require a move towards the $3,650 resistance zone in the coming sessions.

Dips supported in ETH?

If ethereum fails to start a fresh rise above the $3,400 level, it could trigger a downside correction. An initial support on the downside is near the $3,360 zone. The next major support is near the $3,300 level. It is near the 50% Fib retracement level from the recent rise from the $3,130 swing low to $3,431 high.

The main support is near the $3,250 zone and a connecting bullish trendline. A downward breach below the $3,250 support zone could put a lot of pressure on the bulls. In the said case, the price may drop to $3,100.

Technical indicators

Hourly MACD – The MACD for ETH/USD is now gaining pace in the bullish zone.

Hourly RSI – The RSI for ETH/USD is now above the 50 level.

Major Support Level – $3,250

Major Resistance Level – $3,400

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