ETH is up 17% this week, this is the next key level to watch out for

• Major support levels: $3,000, $2,805
• Key resistance levels: $3,400, $3,750

Although volume fell as the price rose, ETH continued to perform well this week, surging significantly.

A key resistance level stands at $3,400 and the cryptocurrency appears poised to test this level before a significant pullback. The $3,000 support has held well and could be tested again if ETH is rejected at a key resistance level.

ETH/USDT daily chart | Source: TradingView

Technical indicators

Volume: Volume continues to decrease even as prices increase. This is a bearish signal and it could occur if the price hits a key resistance level.

RSI: The daily RSI has hit 62 and looks like it is trending down. The bounce from the oversold zone is very strong and a retracement is likely in the near future.

MACD: Even though the MACD is rising, the histogram has been flat for the past few days. This signals a loss of bullish momentum. It is best to be cautious when the price is approaching a key resistance area.

ETH/USDT daily chart | Source: TradingView

Perspectives

The current trend of ETH is bullish. It is important to keep an eye on the key resistance as a rejection there could lead to a larger correction.

Short term prediction

It looks like ETH will retest the $3,400 resistance. Once you get there, it’s important to keep a close eye on the price action.

Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.

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