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ETH is Back Above $3,000: Is the Correction Over, and What Level to Watch? Ethereum Price Analysis

Summary:
ETH has broken above ,000 and appears poised to move even higher, ending the short-term downtrend. This comes less than two weeks since bottoming at 60, according to Bitstamp. Key Support levels: ,805, ,500 Key Resistance levels: K, ,400, ,750 After a decent 2-day rally, ETH broke above the key resistance at ,000 today. If ETH can turn this level into support (retest and confirm), this impressive rally could continue much further. In addition, there is also significant support at ,800 should ETH see a deeper pullback. Looking at the bigger picture, ETH needs to surpass the critical level of ,400 in order to make a higher high on the daily timeframe. That would be the first confirmation of a clear bullish reversal. Chart by TradingViewTechnical

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ETH has broken above $3,000 and appears poised to move even higher, ending the short-term downtrend. This comes less than two weeks since bottoming at $2160, according to Bitstamp.

Key Support levels: $2,805, $2,500

Key Resistance levels: $3K, $3,400, $3,750

After a decent 2-day rally, ETH broke above the key resistance at $3,000 today. If ETH can turn this level into support (retest and confirm), this impressive rally could continue much further. In addition, there is also significant support at $2,800 should ETH see a deeper pullback.

Looking at the bigger picture, ETH needs to surpass the critical level of $3,400 in order to make a higher high on the daily timeframe. That would be the first confirmation of a clear bullish reversal.

ETHUSD_2022-02-05_17-28-53
Chart by TradingView

Technical Indicators

Trading Volume: High volume has propelled ETH higher with six green candles in the past week. This puts buyers in control.

RSI: The daily RSI has moved above 50 points, making both a higher high and a higher low. This is a significant reversal, and there is plenty of space to move much higher.

MACD: The daily MACD is bullish, and momentum has intensified in the past two days, as indicated by the histogram and moving averages that are rushing higher. The trend is clearly bullish.

ETHUSD_2022-02-05_17-29-24
Chart by TradingView

Bias

The current bias for ETH is bullish, and there are no signs of weakness.

Short-Term Price Prediction for ETH

ETH is now facing two key challenges. The first is to confirm the $3,000 breakout and turn it into support. The second is to move past the $3,400 level which would ensure a major mid-term trend reversal.

The current momentum favors this scenario, but bears may always come back strong at the key resistance levels. Best to be cautious and watch the $2800 – $3000 support range.

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