Ethereum Price Hits $3K But The Bulls Are Not Done Yet

Ethereum price climbed further higher and broke the $3,000 resistance. ETH is still showing positive signs and might extend gains toward $3,120.

• Ethereum extended its rally above the $2,980 and $3,000 levels.
• The price is trading above $3,000 and the 100-hourly Simple Moving Average.
• There is a key bullish trend line forming with support at $2,950 on the hourly chart of ETH/USD (data feed via Kraken).
• The pair could continue to move up toward the $3,120 resistance zone.

Ethereum Price Extends Rally

Ethereum price formed a base above the $2,850 level and started another increase. ETH cleared the $2,920 resistance zone and outperformed Bitcoin. Finally, the price climbed above the $3,000 barrier.

A new multi-week high is formed near $3,032 and the price is now consolidating gains. Ether is stable near the 23.6% Fib retracement level of the recent increase from the $2,876 swing low to the $3,032 high. There is also a key bullish trend line forming with support at $2,950 on the hourly chart of ETH/USD.

Ethereum is now trading above $3,000 and the 100-hourly Simple Moving Average. Immediate resistance on the upside is near the $3,040 level. The first major resistance is near the $3,065 level. The next major resistance is near $3,120, above which the price might rise and test the $3,220 resistance zone.

Source: ETHUSD on TradingView.com

If there is a move above the $3,220 resistance, Ether could even rally toward the $3,350 resistance. Any more gains might call for a test of $3,500.

Downside Correction In ETH?

If Ethereum fails to clear the $3,040 resistance, it could start a downside correction. Initial support on the downside is near the $2,995 level.

The first major support is near the $2,950 level and the trend line zone. It is close to the 50% Fib retracement level of the recent increase from the $2,876 swing low to the $3,032 high. The next key support could be the $2,910 zone. A clear move below the $2,910 support might send the price toward $2,880 or the 100-hourly Simple Moving Average. The main support could be $2,850. Any more losses might send the price toward the $2,720 level in the coming sessions.

Technical Indicators

Hourly MACD – The MACD for ETH/USD is gaining momentum in the bullish zone.

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

Major Support Level – $2,950

Major Resistance Level – $3,040

Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

Source