Key Takeaways:
Ethereum price broke the $3,350 resistance and started a fresh increase.
ETH/USD broke a crucial bearish trend line with resistance at $3,350 on the daily chart.
The price faced a strong resistance near $3,530 and the 50-day simple moving average.


New Delhi (Coinchapter.com):
Ethereum (ETH) price found a strong bid near the $2,800 level and started a fresh increase. ETH must clear the $3,530 resistance to continue moving higher.
Ethereum price rise faces key resistance
The price reacted positively after the bears failed to push Ethereum below the critical support of $2,800. The price steadily increased above the $3,000 resistance area, just like Bitcoin broke above $60,000. The bulls succeeded in pushing the price above the $62,000 resistance area.
ETH/USD broke a key bearish trend line with resistance at $3,350 on the daily chart. The price even broke the 50% Fibonacci retracement level of the key decline from the $3,975 high to $2,815 low.


Ethereum price daily chart | Source:
ETH to USD
on TradingView.com
However, the bulls seem to be facing stiff resistance at the $3,530 level and the 50-day simple moving average (blue line). The past 3-4 candles clearly show that the 50-day simple moving average (blue line) is acting as a distraction and preventing more upside.
In case of a downside correction, the price might find support near $3,380. The first important support is near $3,350. A major uptrend support line is now forming near $3,200 area (multiple touches and recent breakout area).
There is a high risk of a downside if the daily close falls below the $3,200 support area. In this case, the price might test the $3,080 level. The next important support is near $3,000. Further losses could push Ether towards the $2,800 support.
Will Ethereum see a new surge in price?
Conversely, Ethereum might break above the 50-day simple moving average (blue line) to continue rising. The first important resistance is near the $3,530 level and the 61.8% Fibonacci retracement level of the key decline.
The next resistance is near the $3,700 level. A successful break above the $3,700 level could open the doors towards the $3,880 level. If Ethereum bulls push the price above the $3,800 resistance, there could be a fresh increase.
In such a case, the price could rise towards the $4,000 level. Further gains could spark a rally towards the $4,200 area in the near term.
Overall, Ethereum price is consolidating gains below the $3,530 resistance level. To continue moving up, ETH must stabilize above $3,530 and the 50-day simple moving average (blue line).