Ethereum Tightens Uptrend Structure as Market Eyes Another Wave of Gains

Ethereum price started a fresh increase above $3,200. ETH is now consolidating gains and might aim for more gains above $3,250.

• Ethereum started a fresh increase above the $3,050 and $3,120 levels.
• The price is trading above $3,120 and the 100-hourly Simple Moving Average.
• There is a short-term contracting triangle forming with support at $3,130 on the hourly chart of ETH/USD (data feed via Kraken).
• The pair could continue to move up if it settles above the $3,240 zone.

Ethereum Price Eyes Another Upside Break

Ethereum price managed to stay above $2,920 and started a fresh increase, like Bitcoin. ETH price gained strength for a move above the $3,000 and $3,050 resistance levels.

The bulls even pumped the price above $3,150.  However, the bulls struggled to clear $3,240 and $3,250. A high was formed at $3,239 and the price recently corrected some gains. There was a spike below the 23.6% Fib retracement level of the recent move from the $2,718 swing low to the $3,239 low.

Ethereum price is now trading above $3,120 and the 100-hourly Simple Moving Average. There is also a short-term contracting triangle forming with support at $3,130 on the hourly chart of ETH/USD.

If there is another upward move, the price could face resistance near the $3,200 level. The next key resistance is near the $3,240 level. The first major resistance is near the $3,250 level. A clear move above the $3,250 resistance might send the price toward the $3,320 resistance. An upside break above the $3,320 region might call for more gains in the coming days. In the stated case, Ether could rise toward the $3,450 resistance zone or even $3,500 in the near term.

Downside Correction In ETH?

If Ethereum fails to clear the $3,240 resistance, it could start a fresh decline. Initial support on the downside is near the $3,120 level. The first major support sits near the $3,050 zone.

A clear move below the $3,050 support might push the price toward the $3,000 support. Any more losses might send the price toward the $2,980 region and the 50% Fib retracement level of the recent move from the $2,718 swing low to the $3,239 low in the near term. The next key support sits at $2,850 and $2,840.

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 zone.

Major Support Level – $3,130

Major Resistance Level – $3,240