Why Ethereum Could Rally Further Above $3K

Ethereum found a strong support near the $2,300 zone against the US Dollar. ETH price is rising and might rally if it clears the $2,750 resistance zone.

• Ethereum started a major increase above the $2,750 resistance zone.
• The price is now trading above $2,900 and the 100 hourly simple moving average.
• There is a major bullish trend line forming with support near $2,960 on the hourly chart of ETH/USD (data feed via Kraken).
• The pair could rally further above $3,000 if there is no downside break below $2,850.

Ethereum Price Remains Supported

Ethereum started a major increase above the $2,750 and $2,850 resistance levels. ETH even cleared the $2,880 resistance level and the 100 hourly simple moving average to move into a positive zone.

Finally, there was a move above the $3,000 level. A high was formed near $3,042 and the price is now consolidating gains. It is trading well above the 23.6% Fib retracement level of the recent wave from the $2,559 swing low to $3,042 high.

There is also a major bullish trend line forming with support near $2,960 on the hourly chart of ETH/USD. On the upside, ether price is facing resistance near the $3,020 level.

Source: ETHUSD on TradingView.com

The first major resistance is seen near the $3,040 and $3,050 levels. A clear move above the $3,050 level might open the doors for more gains. In the stated case, the price may possibly rise towards the $3,120 level. The next major resistance is now near the $3,200 level. Any more gains might send the price towards the $3,320 level.

Dips Limited in ETH?

If ethereum fails to continue higher above the $3,050 resistance, it could start a downside correction. An initial support on the downside is near the $2,980 level. The next major support is near the $2,960 level and the trend line.

A downside break below the $2,960 support could push the price towards the $2,850 support level. The next major support is near the $2,800 level and the 100 hourly simple moving average. It is near the 50% Fib retracement level of the recent wave from the $2,559 swing low to $3,042 high.

Technical Indicators

Hourly MACD – The MACD for ETH/USD is now losing pace in the bullish zone.

Hourly RSI – The RSI for ETH/USD is still above the 50 level.

Major Support Level – $2,850

Major Resistance Level – $3,050