TA: Ethereum Approaches Next Breakout, Why ETH Might Surge Further

Ethereum is gaining pace above the $3,350 resistance against the US Dollar. ETH price could continue to rise and might even clear the $3,500 level.

• Ethereum is rising steadily and trading above the $3,350 resistance.
• The price is now trading above $3,350 and the 100 hourly simple moving average.
• There is a key contracting triangle forming with resistance near $3,400 on the hourly chart of ETH/USD (data feed via Kraken).
• The pair could start another increase if it clears the $3,400 and $3,420 resistance levels.

Ethereum formed a base above the $3,120 support zone. ETH started another increase and cleared the $3,250 resistance.

There was also a clear move above the $3,350 level and the price settled above the 100 hourly simple moving average. It traded to a new multi-week high at $3,431 and is currently consolidating gains. There was a minor move below the $3,400 level.

Ether price declined below the 23.6% Fib retracement level of the recent rise from the $3,130 swing low to $3,431 high. On the upside, an initial resistance is near the $3,400 level.

There is also a key contracting triangle forming with resistance near $3,400 on the hourly chart of ETH/USD. The next major resistance is near the $3,420 level. Ether price could start another surge if there is a clear move above the $3,420 resistance.

A close above the $3,420 level might pump the price towards the $3,500 level. Any more gains might call for a move towards the $3,650 resistance zone in the coming sessions.

If ethereum fails to start a fresh increase above the $3,400 level, it could start a downside correction. An initial support on the downside is near the $3,360 zone. The next major support is near the $3,300 level. It is near the 50% Fib retracement level of the recent rise from the $3,130 swing low to $3,431 high.

The main support is near the $3,250 zone and a connecting bullish trend line. A downside break below the $3,250 support zone might put a lot of pressure on the bulls. In the stated case, the price might drop to $3,100.

Technical Indicators

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

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

Major Support Level – $3,250

Major Resistance Level – $3,400