Ethereum, one of the leading cryptocurrencies, has recently shown a fresh surge in its market value, starting off from the sturdy $3,350 safety net. The virtual currency is outpacing Bitcoin with a promising potential of rising further towards the significant resistance of $3,650.
This digital asset, built on a network that supports smart contracts and decentralized applications, has accelerated in value from the pivotal $3,365 support zone. Currently, Ethereum has a market price over $3,450, trading well above the 100-hourly Simple Moving Average.
Breaking previous trends, Ethereum managed to surpass a key bearish trend line that once sustained a resistance close to $3,460. This shift was observed in the hourly chart of the Ethereum to US Dollar exchange rate. Furthermore, the digital currency formed a double-bottom pattern and swiftly gained momentum, breaching the resistance of $3,500.
Ethereum maintained its stability above the critical $3,350 support zone. It established a stable base and initiated an increase following the formation of the double-bottom pattern at $3,350. Ethereum certainly distinguished itself by outperforming Bitcoin and successfully crushing the $3,450 resistance.
Notably, Ethereum exhibited a noticeable move beyond the 50% Fib retracement level. To provide a clearer perspective, this is in reference to the downward curve from the $3,650 swing high to $3,350 low. Alongside this, it managed to break past the daunting bearish trend line with a resistive barrier near $3,460.
At present, Ethereum is successfully maintaining its position above $3,450 and the 100-hourly Simple Moving Average. It’s showing encouraging signs of potential profit gain beyond the $3,535 mark. On the positive side, the digital currency may encounter resistance near the $3,580 level which can take it upwards to the 76.4% Fib retracement level. This level refers to the downward slope from the $3,650 swing high to the $3,350 low.
The first prominent level of resistance to watch will be around $3,650. If Ethereum successfully breaks through the $3,650 resistance, the price could escalate even higher. The subsequent compelling resistance sits at $3,720; a stride above this could spur Ethereum’s price towards the $3,750 level.
An unambiguous move past the $3,750 mark is likely to drive Ethereum towards the formidable $3,880 resistance. Any further gains could potentially push Ethereum towards the coveted $4,000 resistance zone in the near future.
However, Ethereum’s race isn’t devoid of speed bumps. If Ethereum fails to clear the hard $3,580 resistance, it might witness a potential decline. Initial support on the downside hovers near $3,500 while the first major support is at $3,450.
A firm dip below $3,450 support could significantly decrease the price towards $3,350. Any further losses could potentially steer the price towards $3,220 in the coming days.
Looking at the technical indicators, the MACD for Ethereum/USD is gathering momentum in the bullish zone. Simultaneously, the RSI for Ethereum/USD has managed to rise above the 50 zones. Overall, a major support level rests at $3,450, while a major formidable resistance level awaits at $3,580.
