Ether eyes breakout to $3,500: Check forecast

Key takeaways

• ETH is trading above $3,100, up by less than 1% in the last 24 hours.
• The coin could rally towards the $3,500 psychological level if the bullish trend resumes.

ETH continues to range above $3k

The cryptocurrency market has had a positive start to the year, with Bitcoin reclaiming the $90k level. Ether is also trading above $3k once again, while XRP has reclaimed its position as the fourth-largest cryptocurrency by market cap.

However, the three leading cryptocurrencies have been ranging over the past few hours, with altcoins recording mixed performances. Bitcoin and Ethereum extend gains for the second consecutive day, crossing above $92,000 and $3,100, respectively, while XRP stabilizes near $2.00.

The technical indicators suggest that the bulls could regain control of the market and push Ether higher. However, with the weekly candle opening today, it would take a few hours before Ether’s direction could become clear to traders.

Ether eyes $3,500 amid a bullish triangle pattern

The ETH/USD 4-hour chart is bearish and efficient as Ether has lost 1.7% of its value in the last seven days. At press time, ETH is trading at $3,113, above the local support trendline connecting the December 18 and 29 lows.

The momentum indicators suggest that the bulls are currently in control of the market. The RSI of 49 shows a fading bearish momentum. If the RSI crosses above the neutral 50, Ether’s price could rally higher in the near term.

The MACD lines are also close to crossing into the positive zone, reinforcing a bullish bias in the market. 

If the bullish trend resumes, Ether could surpass the December 10 high of $3,260, with the next major resistance around the $3,500 psychological level. 

However, if the bearish trend persists, Ether could slip below the $3k level and test the support level around the December 18 low of $2,920.