Why Ethereum (ETH) Could Accelerate Above $3,200, Dips Remain Attractive

Ethereum is trading nicely above the $3,000 and $3,050 support levels.

The price is now trading above $3,100 and the 100 hourly simple moving average.

There is a major bullish trend line forming with support near $3,060 on the hourly chart of ETH/USD (data feed via Kraken).

The pair is likely to resume its rally once it clears the $3,200 resistance zone.

Ethereum Price Eyes Upside Break

Ethereum corrected lower, but the bulls were active above the $3,000 support zone. It climbed higher above the $3,150 level and it even spiked above the $3,200 barrier.

The price traded as high as $3,233, but there was no close above $3,200. The price is now consolidating gains below the $3,200 level, similar to bitcoin. There was a break below the 23.6% Fib retracement level of the recent upward move from the $2,890 swing low to $3,233 high.

However, ETH is still trading well above the $3,100 level and the 100 hourly simple moving average. There is also a major bullish trend line forming with support near $3,060 on the hourly chart of ETH/USD.

The trend line coincides with the 50% Fib retracement level of the recent upward move from the $2,890 swing low to $3,233 high. On the upside, an immediate resistance is near the $3,200 level. The next key resistance is near the $3,230 level.

A clear break and close above the $3,200 and $3,230 resistance levels might start another increase. In the stated case, the price could test $3,350. The next key resistance might be near the $3,500 level.

Dips Supported in ETH?
If ethereum fails to continue higher above the $3,200 and $3,230 resistance levels, it could start a downside correction. An immediate support on the downside is near the $3,120 level.

The next major support is near the $3,100 level. The main support is now forming near $3,060 and the 100 hourly SMA. Any more losses could lead the price towards the $3,000 support zone.

Source:newsbtc.com