Ethereum at over $3,400: Bulls coming back strong!

The cryptocurrency market is experiencing a resurgence of optimism, likely due to the recent surge in Bitcoin. Ethereum (ETH) is benefiting from this positive momentum, showing an increase of over 10%. Its price has risen from $3,050 to approximately $3,480. However, the progress is currently encountering a crucial resistance zone at $3,550.

Ethereum Bulls Make a Comeback https://t.co/iTP0gpDNxm

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Bulls Return with Strength

Ethereum reached the psychological threshold of $3,000 in February. After falling below $3,350, it found a solid support at $3,050 and then experienced a vigorous rebound. It is now trading above $3,500 and the 100-hour simple moving average. This indicates a bullish sentiment in the short term.

Ethereum Price: In-Depth Technical Analysis

The hourly MACD for ETH/USD is showing a bullish divergence. This suggests a potential strengthening of the bullish momentum. As for the hourly RSI, it is currently above 60. This suggests an overbought Ethereum market, yet with persistent buying potential.

The Bollinger Bands, on the other hand, have widened, indicating increased volatility and significant upside potential.

Here are the key supports and resistances to watch for Ethereum:

• Primary Support: $3,380
• Secondary Support: $3,320
• Crucial Support: $3,220
• Major Resistance: $3,700
• Psychological Resistance: $4,000

What Are the Prospects for Ethereum?

Two scenarios are possible.

Bullish Scenario

A break and sustained close above $3,700 would confirm the bullish trend. They could propel Ethereum (ETH) prices towards $4,000 or $4,500.

Bearish Scenario

A failure to break through the $3,700 resistance could lead to a bearish reversal. A break below $3,320 and a close under $3,220 would also confirm this turnaround. They could lead to a drop towards $3,150 or $3,050.

Ethereum’s price is experiencing a promising rise, but the $3,550 resistance is emerging as a major hurdle. To be continued…