Last night, Ethereum (ETH) experienced a notable price increase, driven by market activity and growing optimism surrounding the potential approval of an ETH ETF. This surge saw Ethereum’s value rise by over 20%, enabling it to break through the $3,500 resistance zone and start trading above the $3,600 mark.
What Are the Key Resistance Points?
After breaking through the $3,200 resistance zone, Ethereum embarked on a new upward trend, bolstered by recent actions from the U.S. Securities and Exchange Commission (SEC) that fueled expectations for an ETH ETF. This momentum allowed Ethereum to surpass the $3,350 resistance zone, delivering a strong upward movement.
Ethereum’s performance outstripped that of Bitcoin, as it rose over 20%, breaking past the $3,500 resistance zone to reach $3,721. The cryptocurrency is currently trading above $3,600 and the 100-hour Simple Moving Average. The ETH/USD pair’s hourly chart indicates a short-term ascending channel with support at $3,640, potentially aiding further price increases.
How Could ETH Face Declines?
If Ethereum is unable to break the $3,720 resistance, it may initiate a downward correction. Investors should pay close attention to specific levels and technical indicators in such a scenario. The initial support on the downside is around the $3,640 mark and the channel region, frequently tested during short-term corrections. If this support is breached, the next significant support level is at $3,600.
Breaking the $3,600 support could lead the price down to $3,500 or even $3,400. This critical support acts as a safety net for investors, but a clear move below it could prompt further declines.
Concrete Insights for Investors
Technical Indicators Analysis
– Monitor the $3,600 support level closely; breaching it could lead to substantial losses.
– Watch for a break above $3,720, as this could signal renewed upward momentum.
– Note the hourly MACD, which is losing bullish momentum and suggests a potential price correction.
– Pay attention to the hourly RSI correction from the 85 region, indicating a possible downward pressure on the price.
In conclusion, while Ethereum’s price surge beyond $3,600 is encouraging, investors should exercise caution and keep an eye on key support and resistance levels. The main support at $3,600 is crucial, and any breach could lead to further losses. Conversely, surpassing the $3,720 resistance may reignite bullish momentum.