Ethereum has crossed the $3,200 level for the first time in months and could soon test the resistance at the 23.6% Fib level at $3,369
The broader cryptocurrency market has been rallying over the past few days, and Ethereum is at the heart of it. The second-largest cryptocurrency by market cap is up by nearly 30% in the past week and looks to extend its rally over the next few hours and days.
Ether didn’t perform well yesterday, dropping by 0.64% before reversing the losses and embarking on a mini-rally to end the day trading above $3,100. The cryptocurrency has managed to stay above the $3,200 region for the past few hours, and there is optimism that it could soon test higher resistance levels.
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ETH price outlook
The ETH/USDT pair is looking bullish for the day ahead after rising by nearly 3% in the past 24 hours. For the rest of the day, ETH would need to avoid a decline below the $3,143 pivot if it plans to test the first major resistance level at $3,235. At the moment, ETH is trading at $3,212 per coin and is about to test that resistance level.
ETH/USDT 4-hour chart. Source: Coinalyze
Support from the general cryptocurrency market could provide further leeway. An extended market rally could see Ether test resistance at the 23.6% Fib level of $3,369. Ether hasn’t reached this level in weeks, and it surpassing the resistance level above $3,300 could be the catalyst for ETH to reach $3,500 over the coming days.
However, if ETH is unable to build on its momentum, it could drop to the first major support level at $3,050. Unless there is an extended sell-off, Ether should steer clear of sub-$2,900 levels. Currently, the second major support level stands at $2,959, and it could limit the losses in the case that the market turns bearish.