TA: Ethereum Rally Extends Above $3,400, Why Dips Remain Attractive

Aayush Jindal

1 year ago

2 mins read

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Ethereum extended its rally and it traded to a new all-time high above $3,450 against the US Dollar. ETH price is correcting gains, but it is likely to remain well bid above $3,100.

Ethereum remained in a strong uptrend and it broke the $3,400 level.
The price is now trading well above $3,200 and the 100 hourly simple moving average.
There is a major bullish trend line forming with support near $3,220 on the hourly chart of ETH/USD (data feed via Kraken).
The pair could correct lower, but the bulls are likely to remain active near $3,100 and $3,000.

Ethereum Price Rallies Another 10%

Ethereum is following a strong bullish path above the $3,000 resistance. ETH outpaced bitcoin and it surged above the $3,200 level. There was a 10% rise and the price broke the $3,400 level.

It traded to a new all-time high near $3,456 and it settled nicely above the 100 hourly simple moving average. The price is now correcting gains and it traded below the $3,320 level. There was a break below the 50% Fib retracement level of the recent rally from the $3,088 swing low to $3,456 high.

An immediate support on the downside is near the $3,250 level. There is also a major bullish trend line forming with support near $3,220 on the hourly chart of ETH/USD.

Source: ETHUSD on TradingView.com

The trend line is close to the 61.8% Fib retracement level of the recent rally from the $3,088 swing low to $3,456 high. The next major support is near the $3,080 level, below which the price might extend losses. In the stated case, the price could revisit the $2,950 support and the 100 hourly simple moving average.

More Upsides in ETH?

If Ethereum remains stable above the trend line support and $3,100, it could continue to rise. An initial resistance on the upside is near the $3,320 level.

The first major resistance is near the $3,400 level. A clear upside break above the $3,400 level and could open the doors for a more upsides above the $3,456 high. The next major stop could be $3,550 or even $3,620 in the near term.

Technical Indicators

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

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

Major Support Level – $3,100

Major Resistance Level – $3,400

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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