Ethereum gained bullish momentum and cleared the $3,000 resistance against the US Dollar. ETH price is rising, but it could face hurdles near the $3,200 level.
Ethereum found support and started a strong increase 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 could accelerate higher, but the $3,200 barrier might prevent additional gains.
Ethereum Price Reclaims $3K
Ethereum formed a base for a fresh increase above the $2,800 resistance zone. ETH was able to surpass 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 formed near $3,089 and the price might continue to rise. Ether is trading well above the 23.6% Fib retracement level of the upward move from the $2,952 swing low to $3,089 high.
An immediate resistance on the upside is near the $3,120 level. A clear move above the $3,120 resistance could send the price towards a major hurdle at $3,200. The bears might take a stand near the $3,200 level. If they fail, ether price could perhaps surge towards the $3,420 level in the near term.
Dips Limited in ETH?
If ethereum fails to continue higher above $3,120 or $3,200, it could start a downside correction. An initial support on the downside is near the $3,040 level. The first major support is near the $3,020 level.
It is near the 50% Fib retracement level of the upward move from the $2,952 swing low to $3,089 high. A downside break below the $3,020 level might push the price further lower. The next major support is near the $2,920 level and the 100 hourly SMA, below which there is a risk of a sharp decline. In the stated case, the price might revisit $2,800
Technical Indicators:
Hourly MACD – The MACD for ETH/USD is gaining pace in the bullish zone.
Hourly RSI – The RSI for ETH/USD is now above the 50 level.
Major Support Level – $3,020
Major Resistance Level – $3,200
