Key Takeaways:
Ethereum started a fresh increase from the $3,000 support zone. ETH/USD surpassed a short-term contracting triangle with resistance at $3,300 on the daily chart. The price shows bullish signs and might soon climb toward the $4,000 level.Ethereum (ETH) is gaining momentum above $3,500, beating Bitcoin. The price could resume its increase if it surpasses $3,680.
Ethereum Price Gains Bullish Momentum
In the last technical analysis, we saw a decent increase in Ethereum above the $3,000 resistance level and the 50-day simple moving average (blue). The price even spiked toward the $3,500 resistance level before it faced sellers. There was a move above the 61.8% Fib retracement level of the key drop from the $3,975 swing high to the $2,099 low.
Recently, there was a consolidation phase above the $3,000 support zone. Finally, the price started another increase above the $3,300 resistance zone. On the daily chart, it surpassed a short-term contracting triangle with resistance at $3,300.
Ethereum price daily chart | Source: ETH/USD on TradingView.comEthereum is now trading well above the 50-day simple moving average (blue) and the 76.4% Fib retracement level of the key drop from the $3,975 swing high to the $2,099 low.
These are positive signs and suggest that the price might continue to rise above $3,650. On the upside, the price could face resistance near the $3,680 level. The first major resistance sits near the $3,840 level.
The next resistance is near the $4,000 level. A clear move above this level could open the doors for a strong increase toward the $4,250 level. If ETH bulls push the price above this resistance, they could aim for a new all-time high or even $5,000.
Are Dips Supported In ETH?
Conversely, Ethereum might see a downside correction. Immediate support on the downside is near the $3,450 level. The first major support sits near the $3,300 level or the same triangle’s trend line.
A daily close below the $3,300 level might spark bearish moves in ETH. In the stated case, the price could drop and test the $3,000 support. If the bulls fail to defend the $3,000 support, Ethereum might even decline and retest the 50-day simple moving average (blue) at $2,800.
Overall, Ethereum price is gaining bullish momentum above the $3,500 resistance zone. ETH might continue to rise toward the $4,000 resistance zone in the near term.
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