Ethereum Targets $3,320: Bulls Eye Recovery with Base Formation

Ethereum Sets Sights on $3,320: Bulls Aim for Recovery with Strong Base Formation

Ethereum’s price appears to be establishing a solid foundation above the $2,820 level. With optimism building, ETH could potentially break through the $3,160 resistance and make a push towards the $3,320 resistance.

  • Ethereum is currently consolidating its losses above $2,880.
  • The price is trading above $3,000 and the 100-hourly Simple Moving Average, reflecting positive sentiment.
  • A key bearish trend line near $2,960 has been surpassed, signaling a potential bullish reversal.
  • If the $3,160 resistance is decisively breached, bulls could gain significant momentum.

Ethereum’s Price Targets Further Upside Potential

Ethereum’s price retested the $2,820 support zone and is garnering support, following Bitcoin’s lead. It has entered a consolidation phase after a recovery wave that surpassed the $2,880 and $2,920 resistance levels.

A critical bearish trend line with resistance close to $2,960 was also broken on the hourly chart of ETH/USD. The pair tested the $3,080 resistance zone, reaching a high of $3,072. As a result, the price could eye further gains in the short term.

As of now, Ethereum is trading above $3,000 and the 100-hourly Simple Moving Average. Additionally, it remains above the 23.6% Fib retracement level of the upward move from the $2,894 swing low to the $3,072 high.

In the event of another recovery wave, the price may encounter resistance near the $3,080 level. The first major hurdle lies around $3,150, followed by the $3,200 level. A successful close above $3,200 could propel Ether towards the $3,320 resistance level.

Subsequently, the next significant resistance sits near $3,350. A breakthrough above this level would potentially drive the price even higher towards the $3,500 resistance zone.

Potential Reversal for ETH?

If Ethereum fails to surpass the $3,150 resistance mark, it might face another downturn. Initial support on the downside lies near $3,020, while the first major support zone resides around $2,960. This area coincides with the 61.8% Fib retracement level of the upward move from the $2,894 swing low to the $3,072 high.

A decisive break below the $2,960 support level could lead the price towards $2,880. Any further losses could potentially drive the price towards the $2,820 level in the near term.

Technical indicators

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

The hourly RSI for ETH/USD currently sits above the 50 zone.

Major Support Level – $2,960

Major Resistance Level – $3,150