Eyeing New ATH, ETH Price Ready to Break Through All Bullish Current Barriers
5/29/20242 min read
Ethereum (ETH) has shown strong performance in the latest trading session, maintaining stability above the crucial US$3,540 support zone.
After forming a solid bottom and outperforming Bitcoin, ETH started a new upward movement, passing the US$3,650 level. This positive momentum has caught the attention of investors and traders who are closely watching key levels that may determine the next phase of ETH price action.
ETH Price Poised to Break Out
NewsBTC reports, ETH price moved firmly above the US$3,750 resistance, signaling the potential for further upside. Bulls managed to push prices beyond the 50 percent Fibonacci retracement level of the downward movement from the swing high of US$3,944 to a low of US$3,530. This move was supported by the formation of a key bullish trend line with support at US$3,780 on the hourly chart of ETH/USD. Currently, Ethereum is trading above US$3,750 and the 100-hour Simple Moving Average (SMA) indicator, indicating strong bullish sentiment. The price has also crossed the 76.4 percent Fibonacci retracement level of the same downward move, reinforcing the possibility of an extended upward trajectory.
Resistance Levels to Watch Out for
The nearest resistance for Ethereum is around the US$3,880 level. The first significant resistance is around US$3,920.
A successful break above this level could push the price higher, with the next major resistance at US$4,000. Crossing the US$4,000 level might increase traction, pushing ETH towards the US$4,080 level.
If Ethereum manages to clear the US$4,080 resistance, the price may continue to rise, targeting the US$4,220 resistance. Further gains could push Ether towards the US$4,350 resistance zone, signaling a substantial recovery from the previous low.
Potential Downside Risk
Despite the bullish outlook, there is a downside risk if Ethereum fails to overcome the US$3,880 resistance. In such a scenario, ETH may experience another downside correction. Initial support on the downside is around the US$3,800 level and the trend line.
The next major support point is around the US$3,735 zone. A firm move below this support could push the price towards US$3,630. Additional losses may push the price further to the US$3,540 support in the near term.
Technical indicators currently favor bulls. Hourly MACD for ETH/USD is gaining momentum in the bullish zone, indicating a continued upward move. Meanwhile, the hourly RSI for ETH/USD remains above the 50 zone, indicating positive sentiment among traders.
"The main support is at US$3,800, while the main resistance level is located at US$3,880," said the market analyst.
In conclusion, Ethereum price stability above critical support and the formation of a bullish trend hint at a possible breakout if key resistance levels are surpassed.
Traders and investors should closely watch the US$3,880 and US$3,920 resistance, as well as the US$3,800 and US$3,735 support zones, to gauge the next significant move for ETH.
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