In a striking development, the price of Ethereum, the world’s second-largest cryptocurrency, is flashing signs of a rally above the crucial $3,550 territory. However, for this upward momentum to sustain in the short term, it needs to successfully crest the robust resistance at the $3,680 marker.
Ethereum’s rally unfolded recently when it spurred its surge past the formidable $3,550 resistance zone. As a consequence, the value of Ethereum is currently floating above the $3,550 benchmark as well as the 100-hourly Simple Moving Average. Moreover, the hourly chart mapping the pair ETH/USD, suggests the evolution of a significant bullish trend line with its support pitched at $3,590. This factor indicates that Ethereum’s climb could persist if it securely settles above the $3,680 resistance zone.
This momentum was sparked off after Ethereum managed a leap over the prior barrier of $3,500. No longer restrained by this, Ethereum bulls seized the opportunity to shepherd the token’s price into a positive zone beyond the $3,580 level, following a trajectory similar to Bitcoin’s.
The charge of Ethereum didn’t falter as it transcended the $3,650 obstruction zone. This resulted in a peak of $3,680 before the cryptocurrency underwent a slight correction on the downside. The decline dragged the price under the $3,600 level, even descending below the 23.6% Fibonacci retracement level of the ascent that ranged from the $3,302 nadir to the $3,680 zenith.
As of now, Ethereum is stationed above $3,580 and the 100-hourly Simple Moving Average, indicating an overall bullish trend that could accrue considerable driving force beyond the $3,720 mark. Should this occur, Ethereum could potentially spearhead a rally towards the $3,800 level. A move past the $3,800 resistance could even catapult Ethereum close to the $3,880 resistance. Should Ethereum build on its gains, it might then set sights on the coveted $4,000.
However, should Ethereum falter at overcoming the $3,640 resistance, it might trigger a pullback. Initial support on the downside sits close to the $3,590 threshold, poised right at the bullish trend line.
The foremost line of robust support resides near the $3,550 marker. The next significant safeguard could be seen at the $3,500 boundary or the 50% Fibonacci retracment level of the climb ranging from the $3,302 low to the $3,680 high. Any definitive southward migration under the $3,500 stronghold could likely steer Ethereum to the neighborhood of $3,390. Any additional losses might thrust the token towards the $3,250 area.
Technical analysis reveals Ethereum’s hourly MACD to be tapering its momentum within the bullish zone. Simultaneously, Ethereum’s hourly RSI is stationed over the 50 benchmark indicating more bullishness. Therefore, it is crucial for Ethereum to sustain its major support level at $3,590 along with the important resistance level at $3,680 to maintain this uptrend.
Despite the ongoing gyrations typical of the cryptocurrency market, investors and crypto enthusiasts surely can’t take their eyes off Ethereum’s riveting rally.
