Key Takeaways:
• Ethereum price saw a 10% surge recently, with price surpassing $3,550.
• The cryptocurrency seems to be facing resistance near $3,650.
• Possible future gains predicted if Ethereum clears major resistance levels.
• Support sitting comfortably at $3,255 and $3,550 if Ethereum experiences another decline.
• The MACD for ETH/USD is gaining momentum in the bullish zone.
Ethereum’s Price Hike: A New Bullish Trend?
The price of Ethereum remained steady above the $3,250 zone, experiencing a fresh surge that managed to clear the resistance at $3,550. This indicates the start of an ascending trend from the $3,250 support zone. Ethereum is currently trading above $3,500 and the 100-hourly Simple Moving Average, signifying strong bullish tendencies.
The bearish trend line that had provided resistance, sitting at $3,375, was surpassed in the recent upswing. This break was followed by an impressive nearly 10% price increase, pushing Ethereum’s value to an all-time high of $3,688.
Post Surge Consolidation and Future Predictions
Following this robust surge, Ethereum’s price experienced a slight correction, dipping below the $3,650 zone. Despite this, Ethereum is still trading above $3,550, consolidating gains near the $3,650 level. It’s also currently above the 23.6% Fibonacci retracement level of the upswing from the $3,254 swing low to the $3,688 high.
However, on the upside, Ethereum appears to be encountering hurdles near the $3,650 level. The first significant resistance is at the $3,685 level, with the main resistance forming near $3,720. A clear move beyond the $3,720 resistance may propel the price towards the $3,840 level. If Ethereum successfully breaks through this resistance, potential gains in upcoming sessions could push Ether closer to the $3,950 resistance, or even the coveted $4,000 mark.
Support During Possible Downtrends
If Ethereum stumbles at the $3,685 resistance point, it could trigger another decline. The initial support on the downside sits near the $3,585 level, with the first major support close to the $3,550 zone. If Ethereum’s price breaks below the $3,550 support, it might drop towards the 50% Fibonacci retracement level of the upswing, positioned at $3,470. Further losses could potentially push the price towards the $3,350 support within a short timeframe. The next key support is situated at $3,250.
Technical Indicators Fair Well
Examining the technical indicators for Ethereum, the Moving Average Convergence Divergence (MACD) for ETH/USD is capturing momentum in the bullish zone. This indicates a favorable market for buyers, signaling potential for further price surges.
Additionally, the Relative Strength Index (RSI) also paints a bright picture, with ETH/USD currently holding above the 50 zone. This highlights a neutral market environment indicating neither overbought nor oversold conditions. The major support level for Ethereum stands at $3,485, while the substantial resistance is found at $3,685.
In conclusion, with Ethereum’s recent 10% upswing and current consolidation, the cryptocurrency holds positive prospects for future gains. As long as support levels remain robust and Ethereum clears major resistances, the digital coin’s price could continue its bullish tendency. However, potential declines are also expected to find adequate support. The current technical indicators corroborate these expectations, signalling growing bullish momentum. Investors are advised to keep a close eye on this space, as the crypto market continues to fluctuate rapidly.