The broader crypto market continues to do well this week, gaining almost 2%. The overall cryptocurrency market cap increases by over $1.9 trillion at the time of writing.
If the current market momentum continues, it may soon reach $2 trillion. Bitcoin is still the most valuable cryptocurrency by market capitalization, with a value of approximately $41,000 per coin.
Ethereum, the second-largest cryptocurrency by market cap, has also been doing well and is up by over 4% in the last 24 hours.
The Ethereum price surges to a new all-time high of $3,146 on February 2022, but pulled back slightly below $3,100 before resuming its uptrend.
Ethereum (ETH) is up close to 5% and is currently trading above the $3,200 level.
In the previous seven days, ETH’s value increases by nearly 3%, putting it among the bottom 10 cryptocurrencies in terms of market capitalization.
The Ethereum to USD exchange rate has surged by over 5% in the last 24 hours and is currently trading at $3,500.
Ether, on the other hand, may post further gains in the coming hours and days. Ether may soon challenge the $3,500 resistance level in the short term.
Ethereum has been one of the best-performing major cryptocurrencies in 2020. The Ethereum to USD exchange rate surged from around $130 at the start of the year to highs above $1,400 in February.
Critical levels to note
The ETH/USD 4-hour chart is presently neutral, as Ether’s ongoing good performance cancels out the losses incurred a few days ago. The technical indicators suggest that Ether’s price movement is improving presently.
The Ethereum to USD pair is trading at $3,140 at press time.
Ethereum bulls need to push Ether’s price above the $3,200 level to invalidate the bearish trend; and open the door for a move towards the $3,500 resistance level.
The MACD line has moved into the neutral region, suggesting that Ether is no longer in a bearish phase.
If current market momentum continues, ETH might enter an overbought condition, according to the 14-day RSI of 58.
The Ethereum bulls will likely face significant selling pressure near the $3,200 and $3,300 levels.
ETH is currently trading at $3,100 per coin, down 0.55 percent on the day.
If the bulls hold on to their lead, it could reach $3,227 before the end of the day, toppling its first major barrier at $3,227.
However, in the near term, the second major resistance level of $3,350 will prevent further gains.
Ethereum’s price is currently trading above the $3,000 level and it seems to be following a bullish path. However, it faces strong resistance near the $3,200 and $3,300 levels.
So, Ethereum could correct lower in the short term before it starts another rise.
Ethereum needs to surpass the $3,350 resistance to continue higher in the near term. If it fails to do so, there is a risk of a sharp decline below $3,000.
Ethereum has been following a bullish path since it found support near the $2,800 level against the US Dollar.
ETH started a fresh increase from well below $3,000 and surged above the $3,100 resistance level.
The rally lost momentum in March as the broader cryptocurrency market corrected lower. However, Ethereum started to recover in April and has been on an uptrend since then.
Given the current Ethereum uptrend, it is most likely the cryptocurrency will rise to the $3,500 level.