Ethereum Price Parabolic Advance Gathers Pace, Why Rally Isn’t Over Yet

NEW DELHI (CoinChapter.com) — Ethereum (ETH) is gaining bullish momentum above $3,000. The price could correct a few points, but the bulls might remain active near $2,880.

Ethereum Price Outpaces Bitcoin

In the previous analysis, we discussed how Ethereum could start another rally if it clears the $2,880 resistance zone. Earlier, the price cleared a key bearish trend line with resistance at $2,300 on the daily chart. There was a strong close above the $2,880 resistance and the 50-day simple moving average (blue).

It opened the doors for a push above the $3,000 resistance zone. ETH even outperformed Bitcoin in the last few sessions, climbing toward the $3,150 level. A new multi-month high is formed near $3,130, and the price is now consolidating gains.

Ethereum is now trading comfortably above the 23.6% Fib retracement level of the upward move from the $2,717 swing low to the $3,130 high. The last two daily candles were strong and suggested more upsides in the coming sessions.

Immediate resistance on the upside is near the $3,150 level. The first major resistance is visible near the $3,220 level. A clear move above the $3,220 resistance could send Ether further higher. The next major resistance sits at $3,350. If the bulls clear the $3,350 resistance, the price could surge toward the $4,000 resistance in the coming weeks.

Are Dips Supported In ETH?

If Ethereum struggles to clear the $3,130 high, there could be a short-term pullback. Immediate support sits near the $3,020 level. The first major support sits near the $2,920 level.

The main support is now forming near the $2,880 level (the recent breakout zone). There is also a parabolic curve forming with support near $2,880. It coincides with the 61.8% Fib retracement level of the upward move from the $2,717 swing low to the $3,130 high.

Therefore, the Ethereum price might find strong bids near the $2,880 level. A downside break and a daily close below the parabolic curve could increase selling pressure.

ETH could decline toward the 50-day simple moving average (blue) at $2,600 in the stated case. Perhaps more losses may send the price toward the $2,160 level in the coming weeks.

Overall, Ethereum price is gaining bullish momentum above $3,000 and is well above the 50-DSMA. The next major target for ETH bulls could be $3,350 or even $4,000 soon.