Key Takeaways:
Ethereum started a fresh increase above the $3,350 resistance.
ETH/USD cleared a key bearish trend line with resistance at $3,350 on the daily chart.
The price is facing heavy resistance near $3,530 and the 50-day simple moving average.
New Delhi(Coinchapter.com): Ethereum (ETH) price found strong bids near $2,800 and started a fresh increase. ETH must surpass the $3,530 resistance to continue higher.
Ethereum Price Rally Faces Key Resistance
After the bears failed to push Ethereum below the key support at $2,800, the price reacted to the upside. There was a steady increase above the $3,000 resistance zone, like Bitcoin above $60,000. The bulls were able to push the price above the $62,000 resistance zone.
ETH cleared a key bearish trend line with resistance at $3,350 on the daily chart. The price even surpassed the 50% Fib retracement level of the key decline from the $3,975 swing high to the $2,815 low.
Ethereum price daily chart | Source: ETH to USD on TradingView.com
However, the bulls seem to be facing a strong resistance near the $3,530 level and the 50-day simple moving average (blue). The last 3-4 candles clearly suggest that the 50-day simple moving average (blue) is playing a spoiler and preventing more upsides.
If there is a downside correction, the price might find support near the $3,380 level. The first major support sits near the $3,350 level. The main uptrend support is now forming near the $3,200 region (a multi-touch zone and the recent breakout region).
If there is a daily close below the $3,200 support zone, there is a risk of a larger decline. In the stated case, the price might test the $3,080 level. The next major support is near the $3,000 level. Any more losses might send Ether toward the $2,800 support.
Fresh Surge in ETH Price?
Conversely, Ethereum might clear the 50-day simple moving average (blue) to continue higher. The first major resistance sits near the $3,530 level and the 61.8% Fib retracement level of the key decline from the $3,975 swing high to the $2,815 low.
The next resistance is near the $3,700 level. A clear move above the $3,700 level could open the doors for a move toward the $3,880 level. If Ethereum bulls push the price above the $3,800 resistance, there could be a fresh rally.
In the stated case, the price could rise toward the $4,000 level. Any more gains might initiate a move toward the $4,200 zone in the near term.
Overall, Ethereum price is consolidating gains below the $3,530 resistance. To continue higher, ETH must settle above $3,530 and the 50-day simple moving average (blue).
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