Ethereum ($ETH ) has surged past the $3,350 mark and continues its upward movement, potentially setting the stage for a bullish rally. If the price manages to break the $3,550 resistance level, ETH could see further gains.
Current Price Action
Ethereum's price has recently reclaimed the $3,400 zone, trading above $3,450 and the 100-hour simple moving average (SMA). A positive trend line on the hourly ETH/USD chart, with support around $3,455, suggests that the bullish momentum remains intact. ETH reached a high of $3,535 but faced resistance near the $3,550 level, with bearish pressure preventing further gains.
Despite this, Ethereum has maintained its position above key support levels, including the 23.6% Fibonacci retracement level of the $3,225 swing low to the $3,534 high. The price is holding steady above the $3,450 mark, with initial resistance at $3,500.
Key Resistance and Potential for Further Upside
Ethereum faces notable resistance at $3,525, with the main hurdle located at $3,550. A decisive break above $3,550 could propel the price above $3,620, opening the door for further upward momentum. Should Ethereum continue to advance, potential targets include $3,680 and even $3,750 in the coming sessions.
Bearish Scenario: Risk of a Pullback
While the outlook remains bullish, a failure to break the $3,550 resistance could lead to a correction. The first support lies at $3,455, aligning with the trend line. Should the price dip below this level, the next significant support is at $3,375, corresponding to the 50% Fibonacci retracement of the rally from $3,225 to $3,534.
A decisive break below $3,375 could trigger further declines, potentially pushing the price towards $3,250. If bearish momentum persists, Ethereum may test the $3,220 support, followed by the key support at $3,110.
Conclusion
Ethereum's price action is closely tied to its ability to overcome the $3,550 resistance level. If the bulls manage to push above this threshold, Ethereum could see significant gains, targeting levels near $3,680 and $3,750. However, failure to break through key resistance zones may lead to a pullback, with $3,375 and $3,220 serving as critical support levels. Investors should closely monitor these levels for further signs of market direction.
