Ethereum Price Prepares To Go On Another Bullish Spree, Key Support Intact

2024-02-28 20:07:37

Ethereum price climbed to a new multi-month high above $3,400. ETH is consolidating like Bitcoin and seems to be setting up for another bullish spree.

Ethereum extended its increase above the $3,400 resistance zone.
The price is trading above $3,350 and the 100-hourly Simple Moving Average.
There is a key bullish trend line forming with support at $3,250 on the hourly chart of ETH/USD (data feed via Kraken).
The pair could correct lower, but dips might be limited below the $3,250 support zone.

Ethereum Price Extends Rally

Ethereum price remained in a bullish zone after it settled above the $3,000 pivot level. Bitcoin saw strong moves above the $60,000 resistance. It even rallied toward the $64,000 level. ETH also started a decent increase and cleared the $3,320 resistance.

It surged over 10% and even tested the $3,500 level. A new multi-month high was formed near $3,496 before there was a sharp decline. A low was formed at $3,111 and the price is now attempting a fresh increase. It is still above the 23.6% Fib retracement level of the upward wave from the $3,111 swing low to the $3,465 high.

Ethereum is now trading above $3,350 and the 100-hourly Simple Moving Average. There is also a key bullish trend line forming with support at $3,250 on the hourly chart of ETH/USD. The trend line is close to the 61.8% Fib retracement level of the upward wave from the $3,111 swing low to the $3,465 high.

Immediate resistance on the upside is near the $3,450 level. The first major resistance is near the $3,500 level. The next major resistance is near $3,550, above which the price might gain bullish momentum.

Source: ETHUSD on TradingView.com

If there is a move above the $3,550 resistance, Ether could even rally toward the $3,680 resistance. Any more gains might call for a test of $3,800.

Downside Correction In ETH?

If Ethereum fails to clear the $3,450 resistance, it could start a downside correction. Initial support on the downside is near the $3,380 level.

The first major support is near the $3,285 zone. The next key support could be the $3,250 zone and the trend line. A clear move below the $3,250 support might send the price toward $3,120. Any more losses might send the price toward the $3,050 level.

Technical Indicators

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

Hourly RSI – The RSI for ETH/USD is now above the 50 level.

Major Support Level – $3,285

Major Resistance Level – $3,450

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