Ethereum rallied to $3,200 on Jan. 5, extending gains above key technical levels as traders positioned for additional upside. The asset traded above its 100-hourly simple moving average with bullish momentum indicators showing strength.
What Happened: Price Movement
Ethereum climbed above $3,000 and $3,050 before reaching $3,218. The price pulled back slightly after hitting that high but remained above $3,100.
A short-term bullish trend line formed with support at $3,120 on the hourly chart.
The price is trading above the 23.6% Fibonacci retracement level of the recent increase from the $3,116 swing low to the $3,218 high.
If buyers defend the $3,120 support level, Ethereum could test resistance at $3,200 and $3,220. A break above $3,250 would open the path toward $3,350, with further gains potentially reaching $3,450 or $3,500 in the near term.
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Why It Matters: Technical Outlook
The hourly MACD indicator gained momentum in bullish territory while the RSI moved above 50, suggesting continued buying pressure. Initial support sits at $3,165, representing the 50% Fibonacci retracement level.
A failure to clear $3,220 resistance could trigger a decline toward $3,120 support.
A break below that level would target $3,050, with further losses potentially sending Ethereum toward $3,000.
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