Ethereum Surges to $3,500 Once More: Will Bulls Spark a Further Rally?

Ethereum has seen a surge in price, climbing above the $3,350 resistance level and even reaching $3,500. The cryptocurrency is now eyeing further gains in the near future. The current price action indicates strength in Ethereum as it tests the $3,500 mark and trades above both $3,350 and the 100-hourly Simple Moving Average. On the hourly chart of ETH/USD provided by Kraken, a bullish trend line is forming with support at $3,320. This suggests a positive outlook, with the potential for Ethereum to continue its upward trajectory beyond $3,500 and $3,550 resistance levels.

The recent price surge of Ethereum, amounting to a 10% climb, began with a breakthrough above the $3,250 resistance zone. The cryptocurrency then surpassed $3,350 and continued its upward momentum, breaching the $3,440 resistance level. Ethereum’s price peaked at $3,497 before consolidating gains. The current market sentiment indicates active participation by bulls, with the price maintaining levels above the 23.6% Fibonacci retracement level from the $3,085 swing low to the $3,497 high.

At present, Ethereum is trading above $3,400 and the 100-hourly Simple Moving Average, with a key bullish trend line forming at $3,320 on the hourly chart of ETH/USD. Looking ahead, the cryptocurrency faces resistance near $3,480, with major hurdles at $3,500 and $3,550. A successful breach above $3,550 could propel Ethereum towards the $3,650 resistance level. Further upside potential includes key resistance at $3,720, which, if surpassed, could lead to a push towards the $3,880 resistance zone in the days to come.

In the event that Ethereum fails to break above the $3,500 resistance, a downside correction could occur. Initial support is expected near $3,400, followed by a significant support level at $3,320 and the established bullish trend line. A breach below $3,320 may result in a decline towards $3,270 or the 50% Fibonacci retracement level from the recent upward wave. Additional losses could drive the price towards the $3,220 support level, with a key support zone at $3,150.

Technical indicators for Ethereum show the MACD losing momentum in the bullish zone on the hourly chart for ETH/USD, while the RSI is above the 50 zone. Major support is seen at $3,320, with resistance levels at $3,500 and potential upside targets at $3,650 and $3,880. The current price action suggests a dynamic market environment for Ethereum, with both bullish and bearish scenarios in play.