In a recent surge, Ethereum‘s valuation has soared past the $3,400 mark, igniting optimism among crypto investors. This ascent indicates potential for further growth if the digital currency can breach the notable $3,580 resistance point. A sustained increase hinges on Ethereum’s ability to maintain its position above the $3,250 support threshold and continue trading above the 100-hour Simple Moving Average.
Ethereum Gains Momentum
The ETH/USD pair showed a promising breakout above a key downtrend line, aligning with the $3,400 resistance, suggesting a strengthening uptrend. Analysts observe that Ethereum must now confront immediate resistance near the $3,500 level, clearing which could pave the way for a more substantial rally.
Upward Trajectory Hinges on Key Resistances
After the $3,500 barrier, Ethereum will face its first significant resistance at approximately the $3,550 mark. Surpassing the $3,580 resistance could potentially propel Ethereum towards the $3,720 level, a move that could set the stage for an attempt to test the $4,000 resistance. This bullish scenario is contingent on Ethereum’s ability to maintain upward pressure.
Despite the current bullish indicators, caution remains if Ethereum fails to overcome the critical $3,500 resistance. In such an event, the digital asset may face a decline towards the $3,250 support zone. Should this support fail to hold, Ethereum could potentially slide down to the $3,000 level or even lower to $2,880.
Technical indicators currently show a positive trend, with the hourly MACD for the ETH/USD pair in the bullish zone and the hourly RSI standing above 50, suggesting a level of buying activity in the market.