Ethereum Price Gears Up: Will Bulls Trigger a New Rally?

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As a seasoned analyst with over two decades of experience in the financial markets, I can confidently say that Ethereum‘s price action is showing signs of a bullish trend. The recent surge above the $3,400 and $3,500 resistance levels indicates strong buyer interest. However, the price’s current consolidation phase is not unexpected in such scenarios.

As an analyst, I observed that the Ethereum price commenced a noteworthy uptrend surpassing the $3,350 barrier. Currently, Ethereum is regaining some losses and could potentially accelerate further if it manages to overcome the $3,550 resistance level.

  • Ethereum started a fresh increase above the $3,400 zone.
  • The price is trading above $3,450 and the 100-hourly Simple Moving Average.
  • There is a connecting bullish trend line forming with support at $3,455 on the hourly chart of ETH/USD (data feed via Kraken).
  • The pair could start a decent increase if it clears the $3,525 and $3,550 resistance levels.

Ethereum Price Aims Higher

The cost of Ethereum began a notable rise surpassing the $3,320 threshold, much like Bitcoin. This digital currency successfully breached the hurdles at $3,400 and $3,420 in its upward trajectory.

The price even cleared the $3,500 resistance level. However, the bears remained active below the $3,550 level. A high was formed at $3,535 and the price is now consolidating gains. It declined and traded below the 23.6% Fib retracement level of the upward move from the $3,225 swing low to the $3,534 high.

Currently, Ethereum’s price is being traded above $3,450 and is aligning with the 100-hour moving average. Additionally, a rising bullish trendline is emerging, providing support at approximately $3,455 on Ethereum’s hourly chart against the US dollar.

Looking on the positive side, it appears that the price may encounter obstacles around the $3,500 mark. The initial significant resistance can be found approximately at the $3,525 level.

Currently, a significant barrier is emerging around the $3,550 mark. If we see a strong push past this barrier, it may lead to further advancement towards the next potential hurdle at $3,620. A break above this level might indicate more growth in the upcoming trading periods. Under these circumstances, Ether might reach the resistance zone of $3,680 or potentially even $3,750.

Another Decline In ETH?

If Ethereum doesn’t manage to break through the $3,550 barrier, it might continue on a downward trajectory. A potential first line of defense is at approximately $3,455, which includes a key support level and a trendline. The primary significant support lies around the $3,375 region or the 50% Fibonacci retracement point of the upward movement from $3,225 low to $3,534 high.

If the price drops significantly below $3,375, it could potentially fall towards the $3,250 support. Further declines may lead to a drop towards the nearby $3,220 support. In the short term, the crucial support lies at $3,110.

Technical Indicators

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

Hourly RSI – The RSI for ETH/USD is now below the 50 zone.

Major Support Level – $3,425

Major Resistance Level – $3,550

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2024-12-26 06:40