50Day SMA Crucial for Ethereum ETH to Overcome Resistance for Further Gains

Key Takeaways:
Ethereum has initiated a new uptrend by surpassing the $3,350 resistance level.
On the daily chart, ETH/USD has broken a significant bearish trend line at $3,350.
The price is currently facing strong resistance near $3,530 and the 50-day simple moving average.


New Delhi(Coinchapter.com):
The price of Ethereum (ETH)
has found strong support around $2,800 and is now experiencing a fresh surge. However, in order to continue its upward momentum, ETH needs to overcome the resistance at $3,530.
Ethereum Price Rally Confronts Key Obstacles
Despite attempts from bears to push Ethereum below its
critical support level of $2,800
, the price has responded with an upward movement. It has steadily risen above the $3,000 resistance zone, much like
Bitcoin surpassing $60,000
. The bulls have successfully pushed the price above the $62,000 resistance level.
ETH has broken a significant bearish trend line at $3,350 on the daily chart. Furthermore, the price has even exceeded the 50% Fibonacci retracement level, which indicates a key decline from the swing high of $3,975 to the low of $2,815.


Ethereum price daily chart | Source:
ETH to USD
on TradingView.com
However, the bulls are currently encountering strong resistance near the $3,530 level and the 50-day simple moving average (blue line). The last 3-4 candles clearly indicate that the 50-day simple moving average (blue line) is acting as an obstacle, preventing further upward movement.
In the event of a downward correction, the price may find support around the $3,380 level. The initial major support level is located near $3,350. The primary uptrend support is now forming around the $3,200 region, which is a multi-touch zone and the recent breakout area.
If the price closes below the $3,200 support zone on a daily basis, there is a possibility of a larger decline. In such a scenario, the price may test the $3,080 level. The next significant support level is around $3,000. Further losses could potentially lead to Ether dropping to the $2,800 support level.
Can ETH Price Surge Again?
On the flip side, Ethereum has the potential to surpass the 50-day simple moving average (blue line) and continue its upward movement. The first major resistance level is situated around $3,530, along with the 61.8% Fibonacci retracement level of the key decline from the swing high of $3,975 to the low of $2,815.
The subsequent resistance level is near $3,700. A clear breakthrough above the $3,700 level may pave the way for a move towards $3,880. If Ethereum bulls manage to push the price above the $3,800 resistance level, a fresh rally could be initiated.
In such a scenario, the price may rise towards the $4,000 level. Further gains might lead to a move towards the $4,200 zone in the near future.
Overall, the price of Ethereum is currently consolidating its gains below the $3,530 resistance level. To continue its upward movement, ETH must successfully settle above $3,530 and the 50-day simple moving average (blue line).