Ethereum has shown promising signs of a fresh increase from the $3,350 support zone. This marks a significant improvement in the performance of ETH compared to Bitcoin. With this upward trend, Ethereum might aim to climb further towards the $3,650 resistance level.
The cryptocurrency has gained momentum from the crucial $3,365 support zone, demonstrating strength in its price action. Currently, ETH is trading above $3,450 and the 100-hourly Simple Moving Average, showcasing a bullish trend. Notably, there was a notable breakthrough of a key bearish trend line with resistance around $3,460 on the hourly chart of ETH/USD.
Formation of Double-Bottom Pattern
ETH has recently formed a double-bottom pattern, indicating a potential uptrend in its price movement. This pattern has provided the necessary support for Ethereum to break through the $3,500 resistance level. Furthermore, the cryptocurrency has surpassed the 50% Fib retracement level, signaling a positive outlook for further gains.
As Ethereum continues to climb, it may encounter resistance near the $3,580 level or the 76.4% Fib retracement level. The primary barrier lies at $3,650, followed by a significant resistance at $3,720. A breakthrough above these levels could propel ETH towards the $3,750 mark, with a potential target of $3,880 in the near future. If the bullish momentum persists, Ethereum might even reach the coveted $4,000 resistance zone in the coming days.
Support Levels and Downside Risks
On the flip side, if Ethereum fails to break the $3,580 resistance, it could face a downward correction. Initial support can be found near $3,500, followed by a major support level at $3,450. A breach below $3,450 might push ETH towards $3,350, with further losses potentially leading to the $3,220 level in the short term.
Technical Indicators
The Hourly MACD for ETH/USD indicates a growing bullish momentum, while the Hourly RSI shows strength above the 50 zone. These technical indicators support the positive price movements seen in Ethereum, reinforcing the possibility of further gains in the cryptocurrency.
Ethereum’s price action has displayed resilience and potential for upward movement, outperforming Bitcoin in the current market conditions. With strong support levels and resistance targets in sight, ETH could continue its upward trajectory and aim for higher price levels in the near future.
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