Ethereum gained bullish momentum and cleared the $3,000 resistance against the US Dollar. ETH price is rising, but it might face hurdles near $3,200.
- Ethereum found support and started a strong surge above the $3,000 level.
- The price is now trading above $3,000 and the 100 hourly simple moving average.
- There was a break above a key bearish trend line with resistance near $3,010 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair might accelerate higher, but the $3,200 barrier might prevent additional gains.
Ethereum Price Reclaims $3,000
Ethereum formed a basis for a fresh increase above the $2,800 resistance zone. ETH managed to clear many hurdles near the $2,880 and $3,000 levels.
It even settled above the $3,000 resistance and the 100 hourly simple moving average. Recently, there was a break above a key bearish trend line with resistance near $3,010 on the hourly chart of ETH/USD. The pair is now rising and trading above the $3,050 level.
A high is forming near $3,089 and the price could continue higher. Ether is trading well above the Fib retracement level of 23.6% of the bullish move from the $2,952 swing low to the $3,089 high.
Source: ETHUSD on TradingView.com
Immediate resistance on the upside is near $3,120. A clear move above the $3,120 resistance could lead the price to a major hurdle at $3,200. The bears could take a position near the $3,200 level. If they fail, Ether price could perhaps rally towards $3,420 in the short-term.
Dips Limited in ETH?
If Ethereum fails to scale further above $3,120 or $3,200, it could start a downside correction. Initial support on the downside is near $3,040. The first major support is near the $3,020 level.
It is near the 50% Fib retracement level of the move higher from the $2,952 swing low to the $3,089 high. A downside break below the $3,020 level could push the price further lower. The next major support is near $2,920 and the 100 hourly SMA, below which there is a risk of a sharp decline. In the case mentioned, the price could return to $2,800
Technical indicators
Hourly MACD – ETH/USD MACD is gaining pace in the bullish zone.
Hourly RSI – The RSI for ETH/USD is now above the 50 level.
Greater support level – $3,020
Main resistance level – $3,200
