In the ever-evolving world of digital currency, Ethereum, the world’s second-largest cryptocurrency, has been making waves. Having tested support zones around the $2,820 mark, Ethereum is showing indications of forming a solid base above this level, leading experts to believe it could break through the resistance levels of $3,160 and make a run toward the $3,320 resistance level.
Recent developments have seen Ethereum consolidating losses, holding steadfast above the $2,880 level. Currently, Ethereum is trading higher, breaching the $3,000 mark, and performs above the 100-hourly Simple Moving Average, a key barometer in the crypto sphere. In tandem with these developments, Ethereum saw a break above a critical bearish trend line, with a resistance near the $2,960 mark on the hourly chart of ETH/USD, according to data from Kraken.
The ETH/USD pair could potentially gain bullish momentum if there’s a close above the $3,160 resistance level. In the same vein, Ethereum has retested the $2,820 support zone, signaling a consolidation phase, similar to its big brother, Bitcoin, resulting in a recovery wave, seen rising above the $2,880 and $2,920 resistance levels.
The same rising trends have been observed, breaking above a pivotal bearish trend line with the resistance near the $2,960 mark on the hourly chart of ETH/USD. The pair then hit the $3,080 resistance zone, forming a new high at $3,072. Experts suggest these factors could set up Ethereum for further short-term gains.
With the price shifting above the $3,000 mark and over the 100-hourly Simple Moving Average, Ethereum is also outpacing the 23.6% Fib retracement level of the upward move from a swing low of $2,894 to a high of $3,072.
Should the bullish trend proceed, prices could encounter resistance near the $3,080 level. The first substantial resistance lies around the $3,150 mark, with another significant barrier at the $3,200 level. Should Ether close above the $3,200 mark, a surge towards the $3,320 resistance could be on the cards.
However, there’s a potential hurdle to overcome. If Ethereum can’t breach the $3,150 resistance level and falter, we could see a downward shift, with initial support expected to be around the $3,020 mark. The following significant support being around the confines of the $2,960 zone, corresponding to the 61.8% Fib retracement level of the upward swing from the low of $2,894 to the high of $3,072
If ETH/USD breaks below the $2,960 support level, prices could test the waters towards the $2,880 level. If further losses are incurred, experts caution that Ethereum may retreat towards the $2,820 level in the near term.
As for technical indicators, the Hourly MACD, or Moving Average Convergence Divergence, shows the ETH/USD pairing is gaining traction in the bullish zone. In addition, the Hourly RSI, the Relative Strength Index, for ETH/USD is now sitting comfortably above the 50 zone.
As it stands, the significant support level is set at $2,960, while the major resistance level lies at $3,150. Only time will tell what heights Ethereum could reach.
