TA: Ethereum Gains Traction, Why ETH Could Rally Above $3,400

Ethereum

Ethereum extended its upward move above the $3,300 resistance against the US Dollar. ETH price is showing positive signs and it may even surpass $3,400.

Ethereum Price Breaks Key Resistance

Ethereum remained well bid above the $3,000 support zone, similar to bitcoin near $45,000. ETH price formed a base above $3,050 and it started a fresh increase.

There was a clear break above the $3,200 and $3,250 resistance levels. Besides, there was a break above a key bearish trend line with resistance near $3,240 on the hourly chart of ETH/USD. The pair is now trading above $3,250 and the 100 hourly simple moving average.

It traded above $3,300 and it is testing the 1.236 Fib extension level of the drop from the $3,312 swing high to $3,131 swing low. On the upside, an initial resistance is near the $3,355 level.

Source: ETHUSD on TradingView.com

A clear break above $3,355 might call for more gains. The first key resistance is now forming near the $3,260 level. It is close to the 1.618 Fib extension level of the drop from the $3,312 swing high to $3,131 swing low. Any more gains may possibly call for a move towards the $3,500 level.

Dips Limited in ETH?

If ethereum fails to continue higher above the $3,355 and $3,360 resistance levels, it could start a fresh downside correction. An immediate support on the downside is near the $3,300 level.

The key support is now forming near the $3,250 zone and the broken trend line. A downside break below the $3,250 support zone could push the price towards the 100 hourly simple moving average. The next major support could be $3,200, below which the bears might aim a retest of $3,120 in the near term.

Technical Indicators

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

Hourly RSIThe RSI for ETH/USD is now well above the 60 level.

Major Support Level – $3,250

Major Resistance Level – $3,420

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