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Why Ethereum (ETH) Bulls Keeps Pushing, Why Rally Isn’t Over Yet

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Ethereum is holding gains above the $3,200 resistance zone against the US Dollar. ETH price remains attractive and it might continue to rise towards the $3,350 resistance.

  • Ethereum is trading nicely above the $3,100 and $3,150 support levels.
  • The price is now trading above $3,200 and the 100 hourly simple moving average.
  • There is a key bullish trend line forming with support near $3,110 on the hourly chart of ETH/USD (data feed via Kraken).
  • The pair is consolidating and it is likely to extend gains above the $3,250 level.
Ethereum Price Could Extend Gains

Ethereum climbed higher steadily above the $3,150 resistance zone. ETH price even broke the $3,200 resistance zone and it settled nicely above the 100 hourly simple moving average.

A new multi-week high is formed near $3,278 and the price is now correcting gains. It declined below the $3,240 support level. There was a break below the 23.6% Fib retracement level of the recent wave from the $3,052 swing low to $3,278 high.

However, ether price remained well bid above the $3,150 support. It also found support near the 50% Fib retracement level of the recent wave from the $3,052 swing low to $3,278 high.

There is also a key bullish trend line forming with support near $3,110 on the hourly chart of ETH/USD. On the upside, an immediate resistance is near the $3,250 level. The next key resistance is near the $3,275 level.

Source: ETHUSD on TradingView.com

A clear break and close above the $3,250 and $3,275 resistance levels might spark an upside continuation. The next key resistance might be near the $3,350 level, above which the price might rise towards the $3,500 resistance zone.

Dips Limited in ETH?

If ethereum fails to continue higher above the $3,250 and $3,275 resistance levels, it could start a downside correction. An immediate support on the downside is near the $3,180 level.

The first key support is near the $3,165 level. The main support is now forming near $3,110, the trend line, and the 100 hourly SMA. A downside break below the trend line support might push the price towards the $3,060 support. Any more losses could lead the price towards the $3,000 support zone.

Technical Indicators

Hourly MACD – The MACD for ETH/USD is about to move into the bullish zone.

Hourly RSI – The RSI for ETH/USD is still above the 50 level.

Major Support Level – $3,100

Major Resistance Level – $3,275


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