TA: Ethereum Just Reversed But $3,150 Presents A Major Challenge

• Ethereum started a fresh increase above $3,000 after testing the $2,780 zone.
• The price is now trading above $3,000 and the 100 hourly simple moving average.
• There was a break above a key bearish trend line with resistance near $2,910 on the hourly chart of ETH/USD (data feed via Kraken).
• The pair could rise towards the main $3,150 and $3,165 resistance levels in the near term.

Ethereum Price Gains Traction

Ethereum remained strong near $2,780 and started a fresh increase, similar to bitcoin. ETH was able to clear the $2,880 and $2,950 resistance levels to enter a positive zone.

There was a break above a key bearish trend line with resistance near $2,910 on the hourly chart of ETH/USD. The pair surpassed the 50% Fib retracement level of the key decline from the $3,165 swing high to $2,788 low.

Ether price is now trading above $3,000 and the 100 hourly simple moving average. It is consolidating near the $3,040 resistance level. The bears seem to be protecting the 61.8% Fib retracement level of the key decline from the $3,165 swing high to $2,788 low.

The first major resistance is near the $3,075 level. The main resistance is still near the $3,150 and $3,165 levels. A break above $3,150 and $3,165 could start a steady increase. The next key resistance is near $3,200, above which the price might accelerate higher.

Dips Limited in ETH?

If ethereum fails to continue higher above the $3,050 and $3,075 resistance levels, it could start a fresh downside correction. An initial support on the downside is near the $2,975 level.

The first key support is now forming near the $2,950 level and the 100 hourly simple moving average. If ether fails to stay above $2,950, there is a risk of a larger decline. In the stated case, the price might slide towards the $2,800 level.

Technical Indicators

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

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

Major Support Level – $2,950

Major Resistance Level – $3,075

Source:www.newsbtc.com