Key Takeaways:
- Ethereum is consolidating above the key support at $3,250.
- ETH/USD is firm above an important bullish trend line, with current support at $3,240 on the weekly chart.
- The price seems to be setting up for a fresh rally unless there is a weekly close below $3,200.
NEW DELHI (CoinChapter.com) — Ethereum (ETH) is forming a bullish pattern above $3,200. If the bulls clear the $3,550 resistance zone, it could see a decent increase.
Ethereum Price Jumps From Support
In the last Ethereum price technical analysis with a weekly chart, we discussed the chance of a downside thrust toward the $3,200-$3,250 support zone. ETH did extend its decline from the $4,000 resistance zone and dipped below $3,320.
There was a move below the 50% Fib retracement level of the key increase from the $2,824 swing low to the $3,975 high. However, the bulls were active near the $3,200-$3,250 support zone. They protected more downsides and sparked a sharp recovery like Bitcoin.
Ethereum tested the 61.8% Fib retracement level of the key increase from the $2,824 swing low to the $3,975 high and reacted to the upside. It is still firm above an important bullish trend line with current support at $3,240 on the weekly chart.
The last weekly candle is bullish and signals a possible hammer pattern. Immediate resistance is near the $3,525 level. The first major resistance is $3,550. If the price clears the $3,550 resistance, it could gain pace and rise toward the $3,700 resistance.
The next key resistance might be $3,880. A close above the $3,880 level could open the doors for a fresh test of the $4,000 hurdle. Any more gains might send the price toward the $4,250 level in the coming days.
Downside Extension In ETH?
Conversely, Ethereum might see another downside thrust. Immediate support sits near the $3,265 level. The first major support is visible near the $3,240 level and the trend line. The main support seems to be forming near the $3,200 level.
A downside break and a weekly close below the $3,200 support might spark strong bearish moves. In the stated case, the price might decline toward the $3,000 region.
The next major support is visible near the $2,825 level, below which the price could slide and test the 50-week simple moving average (blue) at $2,550. Any more losses might send the price toward the $2,120 support region.
Overall, Ethereum price is signaling a strong bullish reaction from $3,250. If the bulls remain active above the $3,200 support zone, ETH could gain bullish momentum and clear the $3,550 resistance.
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