TA: Ethereum Approaches Next Major Break, $3K Is The Key

Aayush Jindal

1 year ago

2 mins read

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Ethereum recovered nicely above the $2,750 resistance zone against the US Dollar. However, ETH price must clear $3,000 for a steady increase in the coming sessions.

Ethereum is up over 15% and it cleared the $2,750 resistance zone.
The price is still well below the $3,000 level and the 100 hourly simple moving average.
There is a crucial contracting triangle forming with resistance near $2,880 on the hourly chart of ETH/USD (data feed via Kraken).
The pair must clear $2,880 and $3,000 to move back into a positive zone in the near term.

Ethereum Price is Facing a Key Hurdle

Ethereum started a decent recovery wave and it climbed above the $2,500 barrier. ETH even surpassed the $2,650 resistance zone to move into a short-term positive zone, similar to bitcoin.

The price even cleared the $2,850 resistance. However, the bulls are facing a major resistance near the $3,000 level and the 100 hourly simple moving average. The recent high was near $3,006 and the price is now consolidating gains.

It is still well below the $3,000 level and the 100 hourly simple moving average. There was a break below the 23.6% Fib retracement level of the upward move from the $2,158 swing low to $3,006 high.

Source: ETHUSD on TradingView.com

It seems like there is a crucial contracting triangle forming with resistance near $2,880 on the hourly chart of ETH/USD. A successful break above the triangle resistance and $2,900 could spark a bullish wave. In the stated case, there are chances that ether price could even surpass the $3,000 level and the 100 hourly SMA.

The next major resistance is near the $3,300 level. Any more gains could lead the price towards the $3,500 level.

Fresh Decline in ETH?

If Ethereum fails to continue higher above the $2,880 and $3,000 resistance levels, it could start another decline. An initial support on the downside is near the $2,800 level and the triangle trend line.

The first key support is near the $2,580 level. The 50% Fib retracement level of the upward move from the $2,158 swing low to $3,006 high is also near the $2,580 level. Any more losses could trigger a larger decline in the coming sessions.

Technical Indicators

Hourly MACD – The MACD for ETH/USD is slowly moving into the bearish zone.

Hourly RSI – The RSI for ETH/USD is now approaching the 50 level.

Major Support Level – $2,580

Major Resistance Level – $2,880

Aayush Jindal

Aayush Jindal, a luminary in the world of financial markets, whose expertise spans over 15 illustrious years in the realms of Forex and cryptocurrency trading. Renowned for his unparalleled proficiency in providing technical analysis, Aayush is a trusted advisor and senior market expert to investors worldwide, guiding them through the intricate landscapes of modern finance with his keen insights and astute chart analysis.

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