Ethereum Rockets Higher, Narrowing Distance to a Make-or-Break Resistance Line

[Ben Graham]

Ethereum price started a fresh increase above $2,920. ETH is now attempting to clear the $3,050 resistance and might accelerate higher.

• Ethereum started a fresh increase above the $2,920 and $2,950 levels.
• The price is trading above $2,950 and the 100-hourly Simple Moving Average.
• There was a break above a short-term bearish trend line with resistance at $2,825 on the hourly chart of ETH/USD (data feed via Kraken).
• The pair could continue to move up if it settles above the $3,050 zone.

Ethereum Price Eyes Upside Break

Ethereum price managed to stay above $2,720 and started a fresh increase, like Bitcoin. ETH price gained strength for a move above the $2,850 and $2,880 resistance levels.

There was a break above a short-term bearish trend line with resistance at $2,825 on the hourly chart of ETH/USD. The bulls even pumped the price above $2,950.  However, the price is now testing a key barrier at $3,050. A high was formed at $3,047 and the price is now consolidating above the 23.6% Fib retracement level of the recent move from the $2,718 swing low to the $3,047 low.

Ethereum price is now trading above $2,950 and the 100-hourly Simple Moving Average. If there is another upward move, the price could face resistance near the $3,050 level.

The next key resistance is near the $3,080 level. The first major resistance is near the $3,120 level. A clear move above the $3,120 resistance might send the price toward the $3,200 resistance. An upside break above the $3,200 region might call for more gains in the coming days. In the stated case, Ether could rise toward the $3,350 resistance zone or even $3,380 in the near term.

Another Decline In ETH?

If Ethereum fails to clear the $3,050 resistance, it could start a fresh decline. Initial support on the downside is near the $2,970 level. The first major support sits near the $2,880 zone or the 50% Fib retracement level of the recent move from the $2,718 swing low to the $3,047 low.

A clear move below the $2,840 support might push the price toward the $2,800 support. Any more losses might send the price toward the $2,750 region in the near term. The next key support sits at $2,720 and $2,710.

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 zone.

Major Support Level – $2,970

Major Resistance Level – $3,050