The price of Ethereum surged by more than 20%, driven by growing optimism surrounding the possibility of an Ethereum Exchange-Traded Fund (ETF). ETH managed to overcome several obstacles and even surpassed the $3,500 resistance level.
Ethereum Price Initiates New Bull Run
The price of Ethereum established a base and increased above the $3,200 resistance level. The latest SEC action raised hopes for an ETH ETF. Trades profited on the current surge, which led to a significant increase above the $3,350 barrier level.
It grew more than 20% and outperformed Bitcoin. Above the $3,500 resistance zone, there was a significant move. It is currently consolidating gains above the 23.6% Fib retracement level of the upward run from the $3,067 swing low to the $3,721 high, after trading to a new weekly high at $3,721.
Currently, Ethereum is trading above $3,600 and the 100-hourly Simple Moving Average. On the hourly chart of ETH/USD, there's a short-term rising channel forming with support at $3,640.
The immediate resistance level is around $3,700, followed by a major resistance at $3,720. A breakthrough above $3,720 could potentially propel the price higher.
The next significant resistance lies at $3,800, and surpassing this level might lead to further upward momentum towards $3,880. A clear move above $3,880 could drive the price towards the $3,950 resistance. Continued upward momentum may push Ether towards the $4,000 resistance zone.
Are ETH Dips Attractive?
Ethereum may begin a downward correction if it is unable to break through the $3,720 barrier. The channel zone and the $3,640 level are the first areas of downside support.
Around $3,600 is where the next significant support is located. The price may move toward $3,500 if there is a decisive break below the $3,600 support level. If there are any additional losses, the price may soon move in the vicinity of $3,400.
May 2024, Cryptoniteuae