Ethereum is gaining momentum above the $3,350 resistance. According to technical analysis by NewsBTC’s Aayush Jindal, ETH could continue to rise and even surpass the $3,500 level.
Ethereum Targets $3,500
Ethereum started another increase after forming a bottom above the $3,120 support zone and surpassed $3,400. It rallied as high as $3,431, trading at the highest level in the last few weeks and is currently consolidating gains. However, there was a minor move below the $3,400 level.
ETH settled below the 23.6% Fib retracement level of the recent high from the $3,130 high to $3,431 high. An initial resistance is near the $3,400 level. There is also a key contracting triangle forming with resistance near $3,400 on the hourly chart of ETH/USD. The next major resistance is near the $3,420 level. If there is a clear move above the $3,420 resistance, ETH could start another wave.
$3,420 Significant
A close above $3,420 could push the price towards the $3,500 level. Any further gains could push ETH towards the $3,650 resistance zone in the coming sessions.
Will Ethereum Drop?
Jindal says if Ethereum fails to start a fresh increase above the $3,400 level, it could initiate a downside correction. An initial support on the downside is near the $3,360 zone. The next major support is near the $3,300 level. This is close to the 50% Fib retracement level of the recent rise from the $3,130 low to $3,431 high.
The main support is near the $3,250 zone and a connecting uptrend line. A downside break below the $3,250 support zone could put a lot of pressure on the bulls. In the stated case, the price could drop to $3,100.
What Do Technical Indicators Say?
- Hourly MACD – The MACD for ETH/USD is now gaining momentum in the bullish zone.
- Hourly RSI – The RSI for ETH/USD is now above the 50 level.
- Major Support – $3,250
- Major Resistance – $3,400
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