The recent surge in the cryptocurrency market has significantly boosted Ethereum (ETH) prices. Driven by rising hopes for the approval of an ETH ETF, Ethereum’s value jumped by over 20%, surpassing the $3,500 resistance zone and trading above $3,600.
Ethereum Price Surpasses $3,600
After overcoming the $3,200 resistance area, Ethereum initiated a new uptrend. The latest moves by the US Securities and Exchange Commission (SEC) have heightened ETH ETF expectations, leading to a robust upward movement above the $3,350 resistance zone.
Outperforming Bitcoin, Ethereum gained over 20%, surpassing the $3,500 resistance zone and reaching $3,721. Currently, ETH is trading above $3,600 and the 100-hour Simple Moving Average. There is also a short-term ascending channel on the hourly chart of the ETH/USD pair with support near $3,640. This channel could support further price increases.
Resistance Levels for ETH
The immediate resistance for Ethereum is at $3,700, with the first major resistance at $3,720. A break above $3,720 could push the price even higher. If Ethereum surpasses this level, the next key resistance is at $3,800. Breaking through this level could see prices rising toward $3,880. Successfully surpassing $3,880 could drive ETH to the $3,950 resistance. Further gains might propel ETH towards the $4,000 resistance zone.
Potential Declines in ETH
Currently, if Ethereum fails to clear the $3,720 resistance, a downward correction could begin. What levels and technical indicators should investors monitor in this scenario?
Firstly, the initial support on the downside is near $3,640 and the channel region. This level often gets tested during short-term corrections. If this support level breaks, the next major support is near the $3,600 zone. This critical support acts as a safety net for investors. However, a decisive move below $3,600 could push the price towards $3,500. In case of further declines, Ethereum’s price could drop to $3,400.
Recommendations for Investors
- Closely monitor the $3,600 level.
- If $3,640 support breaks, be prepared for a move to $3,500.
- If $3,720 resistance is surpassed, the uptrend may continue.
Technical Indicators
When evaluating Ethereum’s current price movements, it is crucial to consider technical indicators. The hourly MACD for the ETH/USD pair is losing momentum in the bullish zone. This indicates a weakening of the upward momentum and suggests a potential correction. Another important indicator, the hourly RSI (Relative Strength Index), is currently correcting from the 85 region. A retreat from this high level implies an exit from the overbought condition, indicating potential downward pressure on the price. Thus, technical indicators are signaling a possible pullback in Ethereum’s price.
Given this data, investors should exercise caution at current levels and closely watch potential support points. The main support level identified at $3,600 is a critical threshold. Falling below this level could lead to more significant losses, driving the price towards $3,500 or even $3,400. Conversely, if the price surpasses the $3,720 resistance, the upward movement is expected to gain momentum again.
This article was created using various sources and AI assistance and does not constitute investment advice.
Follow us on the social media platforms you're most comfortable with
