A Closer Look at Ethereum Price Consolidation

A Closer Look at Ethereum Price Consolidation

Ethereum’s price has been consolidating gains above the $3,400 mark, showing positive signs of potential growth. With the price currently trading above $3,400 and the 100-hourly Simple Moving Average, there is a sense of stability in the market. Additionally, a key bullish trend line has formed with support at $3,420 on the hourly chart of ETH/USD. These indicators point towards a possible move above the $3,500 resistance zone in the near future.

Upward Momentum

Following a base formation above the $3,350 level, Ethereum has initiated another increase in line with Bitcoin’s recent performance. Breaking the $3,400 level has set the stage for further upsides, with the price surpassing the 50% Fib retracement level from the $3,519 swing high to the $3,305 low. The bulls are currently active above the $3,420 level and Ethereum is trading above $3,450 along with the 100-hourly Simple Moving Average. This upward momentum is supported by positive signs above the 76.4% Fib retracement level, indicating a strong bullish sentiment in the market.

On the upside, immediate resistance is anticipated near the $3,500 level, followed by major resistance zones at $3,520 and $3,550. A breakthrough beyond these levels could propel the price towards $3,650, serving as the next target for the bulls. However, failure to clear the $3,520 resistance may lead to a downside correction. In such a scenario, initial support is positioned near the $3,420 level and the trend line, followed by major support levels at $3,400 and $3,350. A breach below $3,350 could signal a downward trend towards $3,320, with a potential further drop to the $3,150 level.

The hourly MACD for ETH/USD is currently gaining momentum in the bullish zone, while the hourly RSI has crossed above the 50 level. These technical indicators suggest a positive outlook for Ethereum’s price movement in the near term.

Ethereum’s price consolidation above $3,400 indicates a period of stability and potential growth in the near future. With clear resistance and support levels outlined, traders can navigate the market with caution. It is important to conduct thorough research and analysis before making any investment decisions, as investing always carries inherent risks. Use the information provided in this article as educational guidance and proceed with caution in the ever-changing cryptocurrency market.

Analysis

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