Ethereum price has begun the new month on a high after breaking out of the range that it has been in the previous month. It has hit the resistance level at $3,500 for the first time since mid-May.
The leading altcoin has surged by about 40.76% over a span of one month. In comparison, Bitcoin has risen by 15.65% during that timeframe. In the new month, ETH will likely record further gains by moving past the psychological level of $5,000 to retest August’s high. The recently implemented London Hard Fork, coupled with its rising role in the crypto industry, will be key drivers.
Ethereum price technical outlook
For the better part of August, ETH traded within a horizontal channel. The channel’s lower border of 3,000 was a crucial support level since earlier in the month. On the upside, it lacked enough bullish momentum to reach the target at 3,400. The bulls’ unsuccessful attempts placed the upper border at 3,387.06.
In the new month, it has managed to surpass the previously evasive level to test the higher target of 3,500. At the time of writing, Ethereum price was up by 2.96% at 3,534.29. On a three-hour chart, it is above the 25 and 50-day exponential moving averages.
I expect the crypto to hover around the resistance level of 3,500 in the immediate term. A rise further will likely have it face resistance at 3,600, thus triggering fresh range-bound trading. On the flip side, a decline below the 3,500 support zone will have Ethereum price drop to along the 25-day EMA at 3,333.60.
