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
