TA: Ethereum Breaks Key Hurdle, Why ETH Could Extend Its Increase

Aayush Jindal

1 year ago

2 mins read

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Ethereum gained traction and broke the $3,400 resistance zone against the US Dollar. ETH price is showing positive signs and it could even surpass the $3,500 level.

Ethereum started a decent increase above the $3,350 and $3,400 resistance levels.
The price is now trading above $3,400 and the 100 hourly simple moving average.
There was a break above a crucial bearish trend line with resistance near $3,360 on the hourly chart of ETH/USD (data feed via Kraken).
The pair is now consolidating gains and it could even surpass the $3,500 level in the near term.

Ethereum Price is Eyeing More Gains

Ethereum formed a base above the $3,200 level and started a fresh increase. ETH was able to clear the $3,350 resistance level and the 100 hourly simple moving average.

There was also a break above a crucial bearish trend line with resistance near $3,360 on the hourly chart of ETH/USD. It opened the doors for a move above the main $3,400 resistance level. Ether extended its move above the $3,420 level and tested the $3,450 level.

A high is formed near $3,450 and the price is now consolidating gains, similar to bitcoin. It is also trading well above the 23.6% Fib retracement level of the recent increase from the $3,115 swing low to $3,450 high.

Source: ETHUSD on TradingView.com

An immediate resistance on the upside is near the $3,420 level. The first major resistance is near the $3,450. A clear break above the $3,450 level could push the price further higher. The next major resistance sits near $3,500. Any more gains could set the pace for a move towards the $3,650 level.

Dips Supported in ETH?

If ethereum fails to continue higher above the $3,420 and $3,450 resistance levels, it could start a downside correction. An initial support on the downside is near the $3,380 level.

The next major support seems to be forming near the $3,350 level. Any more downsides might call for a test of the 50% Fib retracement level of the recent increase from the $3,115 swing low to $3,450 high. The next stop for the bears might be near the $3,240 level.

Technical Indicators

Hourly MACD – The MACD for ETH/USD is slowly losing pace in the bullish zone.

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

Major Support Level – $3,350

Major Resistance Level – $3,450

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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