Ethereum (ETH) is consolidating on the critical support level of $3,250. ETH/USD is consolidating above an important bullish trendline on the weekly chart, with support currently located at $3,240. Unless there is a weekly close below $3,200, the price appears to be preparing for a new leg of gains.

Ethereum Price Prediction Bullish

New Delhi (CoinChapter.com) — Ethereum (ETH) is forming a bullish pattern above $3,200. If the bulls break above the $3,550 resistance zone, the price could see decent growth.

In last week’s Ethereum price technical analysis, we discussed the possibility of a downside shock towards the $3,200-$3,250 support area. ETH extended its decline from the $4,000 resistance zone and broke below $3,320.

The price declined below the 50$ Fibonacci retracement level of the crucial upward move from the $2,824 low to $3,975 high. However, the bulls attacked aggressively around the $3,200-$3,250 support area. They prevented more downside pressure and sparked a strong rally like the one Bitcoin had seen.

Ethereum experienced a test of the 61.8% Fibonacci retracement level of the key upward move from the $2,824 low to the $3,975 high and rebounded. On the weekly chart, it remains firmly above an important bullish trendline with current support at $3,240.

The last candle formation of the last week was bullish, foreshadowing a possible hammer pattern. The current resistance is around $3,525. The first major resistance is at $3,550. If the price breaks above the $3,550 resistance, it may accelerate to the $3,700 resistance.

The next key resistance could be located at $3,880. A close above $3,880 could open the doors towards $4,000 level. Further gains could push the price towards $4,250 level in the coming days.

Downside extension for ETH?

On the other hand, Ethereum could see another downside shock. The current support is near $3,265. The first major support is near the $3,240 level and the trend line. The main support seems to be forming at the $3,200 level.

A downside breakout and weekly close below the $3,200 support could trigger a strong bearish move. In this case, the price could fall to the $3,000 area.

The next major support is near the $2,825 level, below which the price could slide down and test the 50-week simple moving average (blue line) at $2,550. Further declines could push the price towards the $2,120 support area.

Overall, Ethereum price is sending strong bullish signals from $3,250. If bulls remain active above the $3,200 support area, ETH could gain bullish momentum and break above the $3,550 resistance.