In recent news, Ethereum price experienced a significant rally of over 20%, attributed to the increase in hopes of an ETH ETF. The cryptocurrency broke through multiple resistance levels, including the crucial $3,500 zone. This surge has positioned Ethereum above $3,600, with the 100-hourly Simple Moving Average acting as a strong support level.
Upon closer examination of the hourly chart of ETH/USD, a short-term rising channel has been identified, with support at $3,640. This pattern indicates a potential upward momentum in the price of Ethereum. Additionally, immediate resistance levels are found near $3,700 and $3,720, with the latter being a key resistance level to watch out for.
Potential Future Movement
If Ethereum manages to break above the $3,720 resistance, it could pave the way for further gains towards $3,800 and potentially $3,880. Should the bullish momentum continue, Ether may even target the $4,000 resistance zone in the near future. However, failure to surpass the $3,720 resistance could lead to a downside correction.
In terms of support levels, Ethereum has immediate support at $3,640, followed by a major support zone around $3,600. A breach below $3,600 could potentially drive the price lower towards $3,500 and eventually $3,400. Looking at the technical indicators, the hourly MACD for ETH/USD suggests a loss in bullish momentum, while the hourly RSI is currently correcting from the overbought territory.
While Ethereum has experienced a remarkable surge in price recently, with hopes of an ETH ETF driving investor interest, it is crucial to monitor the key resistance and support levels to gauge the potential future movement of the cryptocurrency. Traders and investors should remain vigilant and adapt to any changes in market dynamics to make informed decisions regarding their Ethereum holdings.