Ethereum Strengthens Uptrend as Market Anticipates Further Gains

Ethereum has initiated a new upward movement, surpassing the $3,200 mark and is now consolidating its gains, potentially aiming higher than $3,250.

Key Takeaways

Ethereum's price has risen above $3,050 and $3,120.
Current trading is above $3,120 and the 100-hourly Simple Moving Average.
A short-term contracting triangle is forming, with support at $3,130 on the ETH/USD hourly chart.
If Ethereum maintains its upward trajectory, it may target resistance levels above $3,240.

Ethereum Price Bulls Losing Steam

Ethereum Aims for Further Upside Potential

Ethereum's price has successfully maintained its position above $2,920 and has begun a new increase, similar to the price movement of Bitcoin. The price of ETH gained momentum, leading to a breakthrough beyond the $3,000 and $3,050 resistance levels.

The bullish momentum pushed the price above $3,150; however, the bulls encountered difficulty at $3,240 and $3,250. A peak was reached at $3,239, followed by a minor correction in gains. A dip was observed just below the 23.6% Fibonacci retracement level, calculated from the recent move between the $2,718 swing low and the $3,239 peak. Currently, Ethereum is trading above $3,120 and the 100-hourly Simple Moving Average, with a contracting triangle developing, showing support at $3,130 on the hourly ETH/USD chart.

Ethereum Price Source: ETHUSD on TradingView.com

If Ethereum continues to rise, it may encounter resistance near the $3,200 level. The next significant resistance is around $3,240, with a critical level at $3,250. A decisive move above the $3,250 resistance could propel the price towards $3,320. Should it then move beyond the $3,320 level, further gains might push Ether towards the $3,450 to $3,500 range in the near future.

Is a Downward Correction Looming for ETH?

Should Ethereum struggle to breach the $3,240 resistance, it risks starting a downward correction. Initial support is positioned around the $3,120 level, with major support at the $3,050 mark.

A clear movement below this support could open the door for a drop to the $3,000 range. Any further losses might lead the price to approach the $2,980 area, coinciding with the 50% Fibonacci retracement level based on the recent movement from $2,718 to $3,239. Additional key support levels are identified at $2,850 and $2,840.

Technical Indicators

Hourly MACD: Indicating increasing momentum within the bullish zone.
Hourly RSI: Currently above the 50 level.
Major Support Level: $3,130
Major Resistance Level: $3,240