Ethereum is experiencing a significant upward trend, having recently surpassed the $3,320 level. The cryptocurrency is showing strong potential for further advancement with aspirations of moving beyond the critical $3,500 resistance level.
Following a solid recovery that began at the $3,120 support, Ethereum has consistently climbed, breaching both the $3,220 and $3,300 levels. The momentum further intensified as the price surged past $3,400, achieving a peak close to $3,499. However, the recent performance witnessed a minor correction with the price dipping below $3,320 to test the $3,280 breakpoint before stabilizing. The lowest point recorded during this correction was $3,288, but the currency has since consolidated above the 23.6% Fibonacci retracement level related to its previous decline.
Currently, Ethereum is trading above $3,300 and is positioned above the 100-hourly Simple Moving Average. Despite this upward trajectory, the price encounters short-term resistance at the $3,350 level due to a developing bearish trend line. The immediate resistance that traders are watching closely sits near $3,400, but more notably, a substantial barrier is forming around the $3,420 level, which aligns with the 61.8% Fibonacci retracement of the recent decline.
If Ethereum can break through the $3,420 resistance, it might then target $3,500, and further gains could see it escalate towards the $3,600 to $3,620 range. On the flip side, should the price struggle to overcome the $3,350 resistance, a downward movement may ensue. The initial support to monitor is at $3,320, with more significant support found at approximately $3,285. A breach of this level could see prices falling back toward the $3,220 region and potentially as low as $3,120, with the next critical support resting at $3,040.
In terms of technical indicators, the MACD is showing bullish momentum in the hourly timeframe, while the Relative Strength Index (RSI) remains positioned above the neutral zone.
