Ethereum price is gaining pace above the $3,600 resistance zone. ETH could extend its upward movement if it breaks above the $3,725 resistance zone.
- Ethereum seeks further gains above the $3,725 and $3,740 levels.
- The price is trading above $3,650 and the 100 hourly simple moving average.
- There is a bullish trendline forming with support at $3,480 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could extend its rally if there is a close above the $3,725 resistance zone.
Ethereum price jumps more than 8%
Ethereum price formed a base and started a decent rise above the $3,500 resistance as Bitcoin. ETH surpassed the $3,600 and $3,650 levels to enter a positive zone.
A new weekly high was formed at $3,726 and the price is now consolidating gains. The price is well above the 23.6% Fibonacci retracement level of the upward move from the $3,224 swing low to $3,726 low. It rose more than 8% and there are chances of more advantages.
Ethereum is trading above $3,650 and the 100-hour Simple Moving Average. There is also a rising trend line forming with support at $3,480 on the hourly ETH/USD chart. It is near the 50% Fibonacci retracement level of the upward movement from the $3,224 low to the $3,726 low.
Immediate resistance is near the $3,725 level. The first major resistance is near the $3,750 level. The next key resistance lies at $3,800, above which the price could test the $3,880 level, above which Ether could gain bullish momentum.
Source: ETHUSD on TradingView.com
In the stated case, the price could rise to the $3,880 zone. If there is a move above the $3,920 resistance, Ethereum could even rise towards the $4,000 resistance.
Are dips limited in ETH?
If Ethereum fails to overcome the $3,725 resistance, it could initiate a downside correction. Initial downside support is near the $3,620 level.
The first major support is near the $3,500 zone or trendline. The next important support could be the $3,420 zone. A clear move below the $3,420 support could send the price towards $3,350. Further losses could send the price towards the $3,220 level.
Technical Indicators
MACD per hour – The MACD for ETH/USD is gaining momentum in the bullish zone.
RSI per hour – The RSI for ETH/USD is now above the 50 level.
Major Support Level – $3,500
Main resistance level – $3,725
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