Recently, Ethereum experienced a significant price surge, rallying over 20% amid hopes of an ETH ETF approval by the SEC. This surge in price led to ETH breaking through several key resistance levels, including the $3,500 zone.
Following the breakout, Ethereum’s price is currently trading above $3,600 and is supported by the 100-hourly Simple Moving Average. Additionally, there is a short-term rising channel forming with support at $3,640 on the hourly chart of ETH/USD.
Resistance and Support
In terms of resistance, the immediate hurdle for Ethereum is near the $3,700 level, with a major resistance at $3,720. A break above $3,720 could further push the price towards $3,800 and potentially even $3,880. On the other hand, if Ethereum fails to clear the $3,720 resistance, a downside correction could be triggered. The initial support is at $3,640, followed by a major support at $3,600.
Potential Price Movements
Looking ahead, if Ethereum continues its upward momentum and breaks above $3,880, it could potentially reach the $3,950 resistance level and even target the $4,000 zone. However, failure to surpass the $3,720 resistance may lead to a drop towards $3,500, with further losses potentially pushing the price down to $3,400.
Analyzing the technical indicators, the hourly MACD for ETH/USD is showing signs of losing momentum in the bullish zone. Additionally, the hourly RSI is correcting from the overbought zone, indicating a potential cooldown in the price surge.
While Ethereum has seen a strong rally in price recently, it is crucial to monitor key resistance and support levels, as well as technical indicators, to gauge the potential future movement of the cryptocurrency. Traders and investors should exercise caution and conduct thorough analysis before making any trading decisions in such a volatile market.
Leave a Reply