New Delhi (CoinChapter.com) — Ethereum (ETH) is showing strength above $3,000. The price may correct a few points, but the uptrend may remain active near $2,880.
Ethereum price surpasses Bitcoin
In our previous analysis, we discussed how Ethereum could begin another rally if it clears the $2,880 resistance area. Earlier, the price cleared the key bearish trend line by hitting resistance at $2,300 on the daily chart. It recorded a strong close above the resistance level of $2,880 and the 50-day simple moving average (blue).
This opens the door for a break above the $3,000 resistance zone. ETH has outperformed Bitcoin in the last few sessions, rising to the $3,150 level. A new multi-month high was made around $3,130 and the price is currently on an upward trend.
Ethereum is currently trading comfortably above the 23.6% Fib retracement level, rising from the $2,717 swing low to the $3,130 high. The last two daily candles have been bullish and suggest the potential for more upside in the coming sessions.
Immediate upside resistance is near the $3,150 level. The first major resistance can be seen near the $3,220 level. A clear break above the $3,220 resistance level could push Ethereum higher. The next major resistance level is $3,350. If the bulls clear the $3,350 resistance, the price could surge towards the $4,000 resistance in the coming weeks.
Are dips supported on ETH?
There could be a short-term decline if Ethereum struggles to reach the $3,130 high. Immediate support is near the $3,020 level. The first major support is near the $2,920 level.
Key support is currently forming near the $2,880 level (recent breakout zone). A parabolic curve is also formed with support near $2,880. This is consistent with the 61.8% Fib retracement level of the rise from the $2,717 swing low to the $3,130 high.
Therefore, the Ethereum price could find strong bids near the $2,880 level. A downward breakout and a daily close below the parabola could increase selling pressure.
If indicated, ETH could fall towards $2,600 towards the 50-day simple moving average (blue). Perhaps more losses could push the price towards the $2,160 level in the coming weeks.
Overall, Ethereum price is showing strength above $3,000 and well above the 50-DSMA. The next major target for ETH bulls could soon be $3,350 or even $4,000.