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Ethereum Consolidates as Bulls Eye Breakout Above $3,320

Writer's picture: Blockonome GnomeBlockonome Gnome

Key levels dictate ETH’s next move amid triangle formation.


Ethereum Consolidates as Bulls Eye Breakout Above $3,320

Ethereum (ETH) is currently in a consolidation phase near $3,120 as traders and analysts watch for a potential breakout. Following a recent correction that pushed the cryptocurrency below $3,150, the market now shows mixed signals with a contracting triangle pattern forming on the hourly chart. This technical setup, marked by resistance at $3,120, often precedes significant price movements, making the coming sessions critical for Ethereum's next direction.


Recent price action saw ETH dip to a local low of $3,016, where strong support helped prevent further declines. This level has proven pivotal, reinforcing its importance as traders look for signs of either a bullish breakout or further downside movement. To sustain an upward trajectory, ETH needs to overcome resistance at $3,180, which aligns with the 50% Fibonacci retracement level from the recent decline between $3,340 and $3,016. A push above $3,220 would mark another significant hurdle, while a breakthrough at $3,320 could open the path to $3,450 and higher targets.


On the other hand, Ethereum faces key support levels at $3,040 and $3,060, with the former emerging as a critical zone for bulls to defend. If selling pressure intensifies and the price falls below $3,040, further declines could target $2,980 and $2,920. The $2,880 mark represents a last-ditch support level before the market risks deeper corrections.


Technical indicators suggest a market in flux. While ETH remains below the $3,200 level and the 100-hourly Simple Moving Average, indicating short-term bearish pressure, the price has held above the 23.6% Fibonacci retracement level, hinting at active buying interest. The hourly MACD shows oscillating momentum, and the RSI hovers near the 50 mark, signaling a balance between bullish and bearish forces. Volume analysis reveals moderate trading activity, characteristic of a market in consolidation.


Ethereum’s current range between $3,000 and $3,320 reflects a phase of anticipation. A breakout above $3,320 could confirm renewed bullish momentum and pave the way for higher resistance levels, while a break below $3,040 would likely lead to a deeper retracement. As the triangle narrows, market participants expect volatility to increase, with the outcome likely defining ETH’s short-term trajectory.


photo source / Blockonome

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Blockonome's content is meant to be informational in nature and should not be interpreted as investment advice. Trading, buying or selling cryptocurrencies should be considered a high-risk investment and every reader is advised to do their own research before making any decisions.

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