The cryptocurrency market is experiencing renewed optimism. This is surely due to the recent surge in Bitcoin. Ethereum (ETH) is benefiting from this positive momentum and is up more than 10%. Its price rose from around $3,050 to $3,480. However, the advance currently faces a crucial resistance zone at $3,550.
The bulls are coming back in force
Ethereum reached the psychological threshold of $3,000 in February. After dropping below $3,350, it found strong support at $3,050 then experienced a vigorous rebound. It is now trading above $3,500 and the 100 hourly simple moving average. This indicates short-term bullish sentiment.
Ethereum Price: In-Depth Technical Analysis
The hourly MACD for ETH/USD shows a bullish divergence. This indicates a possible strengthening of the bullish momentum. As for the hourly RSI, it is currently above 60. This suggests an overbought Ethereum market, but with persistent purchasing potential.
The Bollinger bands have widened, indicating increased volatility and significant upside potential.
So here are the key supports and resistances to watch for the Ethereum crypto:
- Main support: $3,380
- Secondary support: $3,320
- Crucial support: $3,220
- Major resistance: $3,700
- Psychological resistance: $4,000
What is the outlook for Ethereum?
Two scenarios can be considered.
Bullish scenario
A breakout and sustained close above $3,700 would confirm the uptrend. They could propel the price of Ethereum (ETH) around $4,000 or $4,500.
Bearish scenario
Failure to breach the $3,700 resistance could result in a bearish reversal. A break below $3,320 and a close below $3,220 would also confirm this reversal. They could lead to a drop towards $3,150 or $3,050.
Ethereum price is seeing a promising climb, but the resistance at $3,550 is shaping up to be a major obstacle. To be continued…
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