Ethereum is showing signs of strength as its price attempts to surpass a key hurdle at $3,580. If it successfully clears this resistance level in the near term, it could regain its bullish momentum and continue on an upward trajectory.
Currently, Ethereum is holding onto its gains above the $3,250 support zone and is trading above $3,400 as well as the 100-hourly Simple Moving Average. In addition, a significant development is the break above a crucial bearish trend line with resistance at $3,400 on the ETH/USD hourly chart.
With these positive indicators in mind, Ethereum is eyeing a potential fresh increase. It has already climbed above the $3,400 resistance zone and has surpassed the 50% Fib retracement level of the downward move from the swing high of $3,587 to the low of $3,250.
The immediate resistance level to overcome is at $3,500, followed by a key resistance level at $3,580. If Ethereum manages to break above this level, it could experience a surge in bullish momentum and could potentially rally towards $3,720. In the best-case scenario, Ethereum might even reach the $3,880 level, and further gains could lead to a test of $4,000.
However, if Ethereum fails to clear the $3,500 resistance, it may face another decline. The initial support level on the downside is at $3,400, and if this is breached, Ethereum could test the $3,250 support zone. Further support levels can be found at $3,060 and $3,000, with a notable level at $2,880.
As for the technical indicators, the MACD for ETH/USD is gaining momentum in the bullish zone, suggesting a positive outlook. The RSI for the pair is now above the 50 level, indicating increasing buying pressure.
Please note that this article is for educational purposes only and does not constitute financial advice. It is advisable to conduct your own research and exercise caution before making any investment decisions.