Ethereum Gains Traction, Why ETH Could Rally Above $3,400

Ethereum extended its upward move above the $3,300 resistance against the US Dollar. ETH price is showing positive signs and it may even surpass $3,400.

Ethereum started a fresh increase above the $3,250 and $3,300 resistance levels.
The price is now trading above $3,250 and the 100 hourly simple moving average.
There was a break above a key bearish trend line with resistance near $3,240 on the hourly chart of ETH/USD (data feed via Kraken).
The pair could accelerate higher if there is a clear break above $3,350.

Ethereum Price Breaks Key Resistance
Ethereum remained well bid above the $3,000 support zone, similar to bitcoin near $45,000. ETH price formed a base above $3,050 and it started a fresh increase.
There was a clear break above the $3,200 and $3,250 resistance levels. Besides, there was a break above a key bearish trend line with resistance near $3,240 on the hourly chart of ETH/USD. The pair is now trading above $3,250 and the 100 hourly simple moving average.
It traded above $3,300 and it is testing the 1.236 Fib extension level of the drop from the $3,312 swing high to $3,131 swing low. On the upside, an initial resistance is near the $3,355 level.

Source: ETHUSD on TradingView.com
A clear break above $3,355 might call for more gains. The first key resistance is now forming near the $3,260 level. It is close to the 1.618 Fib extension level of the drop from the $3,312 swing high to $3,131 swing low. Any more gains may possibly call for a move towards the $3,500 level.
Dips Limited in ETH?
If ethereum fails to continue higher above the $3,355 and $3,360 resistance levels, it could start a fresh downside correction. An immediate support on the downside is near the $3,300 level.
The key support is now forming near the $3,250 zone and the broken trend line. A downside break below the $3,250 support zone could push the price towards the 100 hourly simple moving average. The next major support could be $3,200, below which the bears might aim a retest of $3,120 in the near term.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is now gaining pace in the bullish zone.
Hourly RSI – The RSI for ETH/USD is now well above the 60 level.
Major Support Level – $3,250
Major Resistance Level – $3,420