Ethereum’s price recently experienced a significant rally, increasing by over 20% driven by growing optimism around the potential approval of an Ethereum Exchange-Traded Fund (ETF). This surge led to ETH breaking through multiple key resistance levels, including the crucial $3,500 mark.
As of the latest data feed via Kraken, Ethereum is currently trading above $3,600, supported by the 100-hourly Simple Moving Average. There is a visible short-term rising channel with a support level at $3,640 on the hourly ETH/USD chart. However, to sustain this upward momentum, it is essential for Ethereum to maintain the $3,400 support level.
The recent rally in Ethereum’s price was partly fueled by increased hopes of an ETH ETF approval following a positive move by the Securities and Exchange Commission (SEC). This development attracted traders looking to capitalize on the market sentiment, resulting in a strong surge in Ethereum’s value.
In terms of immediate resistance levels, Ethereum faces a hurdle near $3,700, with a more significant barrier at $3,720. A breakthrough above $3,720 could pave the way for further gains towards $3,800 and potentially $3,880. If Ethereum manages to surpass the $3,880 level, it might test the $3,950 resistance zone, bringing the $4,000 mark into play.
On the downside, initial support is anticipated around the $3,640 level within the established channel zone. Subsequent major support rests at the $3,600 mark, with a breach potentially leading to a decline towards $3,500. Further losses could push Ethereum down to the $3,400 support level in the near term.
Looking at the hourly technical indicators, the MACD for ETH/USD shows signs of losing momentum in the bullish zone. Similarly, the hourly Relative Strength Index (RSI) for Ethereum is undergoing a correction from the overbought territory around the 85 zone. These indicators suggest a potential consolidation phase or a minor retracement in Ethereum’s price after the recent bullish run.
Ethereum’s price surge, fueled by optimism surrounding the potential approval of an ETH ETF and notable technical breakout, has positioned the cryptocurrency for further gains. However, vigilance is necessary as Ethereum navigates key resistance and support levels in the coming trading sessions.
