Ethereum Surges Above $3,200 as Traders Eye a Stronger Bullish Extension

[Ben Graham]

Ethereum price started a fresh increase above $3,120. ETH is now attempting to clear the $3,250 resistance and might accelerate higher.

• Ethereum started a fresh increase above the $3,000 and $3,120 levels.
• The price is trading above $3,150 and the 100-hourly Simple Moving Average.
• There is a bullish trend line forming with support at $3,120 on the hourly chart of ETH/USD (data feed via Kraken).
• The pair could continue to move up if it settles above the $3,250 zone.

Ethereum Price Eyes More Gains

Ethereum price managed to stay above $2,880 and started a fresh increase, like Bitcoin. ETH price gained strength for a move above the $2,950 and $3,000 resistance levels.

The bulls even pumped the price above $3,120.  However, the price is now testing a key barrier at $3,250. A high was formed at $3,239 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 $3,239 low.

Ethereum price is now trading above $3,150 and the 100-hourly Simple Moving Average. If there is another upward move, the price could face resistance near the $3,250 level.

The next key resistance is near the $3,265 level. The first major resistance is near the $3,320 level. A clear move above the $3,320 resistance might send the price toward the $3,450 resistance. An upside break above the $3,450 region might call for more gains in the coming days. In the stated case, Ether could rise toward the $3,500 resistance zone or even $3,540 in the near term.

Downside Correction In ETH?

If Ethereum fails to clear the $3,250 resistance, it could start a fresh decline. Initial support on the downside is near the $3,160 level. The first major support sits near the $3,120 zone and the trend line.

A clear move below the $3,120 support might push the price toward the $3,050 support. Any more losses might send the price toward the $2,980 region and the 50% Fib retracement level of the recent move from the $2,718 swing low to the $3,239 low in the near term. The next key support sits at $2,920 and $2,880.

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 – $3,120

Major Resistance Level – $3,250