Ethereum (ETH) extended its bullish momentum this week, surging past the $3,400 resistance level as traders eye the next target at $3,500. The price action has outperformed Bitcoin recently, bolstered by strong technical support and a clear uptrend in the hourly charts.
ETH began a new upward move above the $3,150 and $3,220 resistance zones, hitting a high of $3,423 before entering a consolidation phase. According to data from Kraken, the digital asset is currently trading above $3,300 and the 100-hourly Simple Moving Average, indicating ongoing bullish strength.
A bullish trend line has formed with key support near $3,300 on the ETH/USD hourly chart, suggesting Ethereum is well-positioned to maintain its gains unless a major selloff emerges.
Ethereum Price Technical Outlook
As of now, Ethereum is consolidating gains after testing the $3,420 zone. It remains above the 23.6% Fibonacci retracement level from the $2,935 swing low to the $3,423 high, signaling bullish dominance.
On the upside, immediate resistance lies at $3,350, followed by $3,400. A breakout above $3,420 could send ETH toward the $3,500 resistance zone. If momentum continues, the next targets could be $3,550 and potentially $3,650 in the short term.
Key Support Levels to Watch
On the downside, Ethereum has initial support at $3,300. Further support is located near the $3,220 zone — a critical level that could dictate whether ETH maintains its bullish structure or slips back toward $3,050 or even $3,020 in a broader correction.
Technical indicators back the bullish case:
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Hourly MACD: Gaining momentum in the bullish zone
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Hourly RSI: Currently holding above the 50 level, signaling bullish sentiment
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Major Support Levels: $3,300 and $3,220
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Major Resistance Levels: $3,420 and $3,500
Market Sentiment and Analyst View
With strong trading volume and bullish indicators, Ethereum’s breakout is seen as part of a broader market recovery. Investors are closely watching the $3,500 resistance as a psychological barrier, while analysts caution that a rejection at that level could trigger a pullback toward $3,220.
The ongoing momentum places Ethereum in a favorable technical setup, especially as decentralized finance and Ethereum-based protocols regain traction.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Cryptocurrency investments are volatile and risky. Always conduct your research before making any investment decisions.
