Ethereum Corrects Gains, Here’s What Could Trigger Fresh Rally

Ethereum extended its rally and it traded to a new all-time high above $3,520 against the US Dollar. ETH price is correcting gains, but it is likely to start a fresh rally above $3,400.

Ethereum extended its rally above $3,500 and it traded to a new all-time high near $3,525.
The price is now trading well above $3,200 and the 100 hourly simple moving average.
There is a crucial breakout pattern forming with support near $3,260 on the hourly chart of ETH/USD (data feed via Kraken).
The pair could either rally again above $3,400 or it might dive to test the $3,000 support.

Ethereum Price Signaling Fresh Rally
Ethereum remained in a strong uptrend above the $3,200 level. ETH outpaced bitcoin and it climbed above the $3,450 resistance zone to move further into a positive zone.
It traded to a new all-time high near $3,528 and it settled nicely above the 100 hourly simple moving average. Ether price is now correcting gains and it traded below the $3,400 support. There was also a spike below the $3,250 level, but the bulls defended the $3,200 support.
A low is formed near $3,211 and the price is now consolidating. It recovered above the $3,300 and $3,350 levels. There was a break above the 50% Fib retracement level of the recent decline from the $3,437 high to $3,211 low.

Source: ETHUSD on TradingView.com
However, the price is struggling to gain pace above $3,380. It failed to clear the 76.4% Fib retracement level of the recent decline from the $3,437 high to $3,211 low. There is also a crucial breakout pattern forming with support near $3,260 on the hourly chart of ETH/USD.
A successful break above the triangle resistance and $3,380 could start a fresh rally. The next major hurdle for the bulls could be $3,450 or $3,500.
More Upsides in ETH?
If Ethereum fails to climb above $3,380, it could decline further. An immediate support on the downside is near the $3,260 level and the triangle lower trend line.
If there is a downside break below the triangle trend line, the price might even trade below $3,200. In the stated case, ether price may possibly decline towards the $3,000 support.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is slowly losing momentum in the bearish zone.
Hourly RSI – The RSI for ETH/USD is just below the 50 level.
Major Support Level – $3,260
Major Resistance Level – $3,380

Jimmy Steele

I’m known as one of the best Crypto Authors in the market. My work has been featured in numerous publications, including The Wall Street Journal, Forbes, and Barron’s. I’m a regular contributor to CoinDesk and have been a guest on CNBC, Fox Business, and Bloomberg TV.