The price of Ethereum rose more than 20% as hopes for the ETH ETF increased. ETH has broken through many hurdles and even breached the USD 3,500 resistance zone.
- Ethereum started a new wave and managed to break the $3,500 resistance zone.
- The price is trading above USD 3,600 and the 100-hourly Simple Moving Average.
- A short-term ascending channel is forming with support at $3,640 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could continue to rise unless there is a close below the $3,400 support.
Ethereum price starts new uptrend
Ethereum price formed a base and rose above the USD 3,200 resistance zone. Hopes for ETH ETF increased with the recent move by the SEC. Trades benefited from the recent move, resulting in a strong upward move above the USD 3,350 resistance zone.
It outperformed Bitcoin, gaining more than 20%. There was a strong move above the USD 3,500 resistance zone. It traded to a new weekly high at $3,721 and is now consolidating gains above the 23.6% Fib retracement level of the upward move from the $3,067 swing low to the $3,721 high.
Ethereum is now trading above $3,600 and the 100-hourly Simple Moving Average. A short-term ascending channel is also forming with support at $3,640 on the hourly chart of ETH/USD.
The immediate resistance is near the $3,700 level. The first major resistance is around the $3,720 level. An upside break above the USD 3,720 resistance could send the price higher.
The next major resistance is at USD 3,800, above which the price could gain strength and rise towards the USD 3,880 level. If there is a clear move above the USD 3,880 level, the price could rise and test the USD 3,950 resistance. Even more gains could send Ether towards the $4,000 resistance zone.
Are dips attractive in ETH?
If Ethereum fails to clear the USD 3,720 resistance, it could initiate a downward correction. Initial downside support is near the $3,640 level and the channel zone.
The next major support is near the $3,600 zone. A clear move below the USD 3,600 support could push the price towards USD 3,500. Any further losses could send the price towards the USD 3,400 level in the near term.
Technical indicators
hourly MACD – The MACD for ETH/USD is losing momentum in the bullish zone.
RSI per hour – The RSI for ETH/USD is now correcting from the 85 zone.
Major support level – $3,600
Major resistance level – $3,720