Blockchain

Theta Network (THETA), a platform for decentralized video delivery and edge computing, has seen its price skyrocket by 60% in the past 24 hours. This surge has propelled THETA to become the top gainer across the entire spectrum of the top 100 cryptocurrencies.

The rally can be attributed to a confluence of factors, notably the anticipation surrounding the upcoming launch of Theta EdgeCloud in the next quarter, a broader crypto market uplift led by Bitcoin and a bullish chart setup for THETA.

EdgeCloud Launch Sparks Growth Catalyst

At the heart of Theta Network’s bullish trajectory is the Theta EdgeCloud project, an ambitious endeavor to establish a global peer-to-peer cloud computing network. This initiative is poised to harness the power of user devices to scale blockchain applications to new heights.

The excitement around this development was heightened by a tweet from Theta developers yesterday, which stated, “Theta EdgeCloud Phase 1 is coming in Q2! Check out the preview blog on how Theta EdgeCloud is ushering in a new era of AI computing.”

Theta EdgeCloud Phase 1 is coming in Q2! Check out the preview blog on how Theta EdgeCloud is ushering in a new era of AI Computing:https://t.co/kNMYib48RJ

— Theta Network (@Theta_Network) February 26, 2024

Theta’s foray into AI computing aligns with the current market enthusiasm for AI-related tokens, as evidenced by the impressive gains of projects like Render Network (RNDR) and Fetch.Ai (FET). This alignment suggests that Theta’s price surge is not only a result of its intrinsic value proposition but also its strategic positioning within the booming AI narrative in the crypto space.

In the newly released blog post, the Theta team elaborated on EdgeCloud’s mission to democratize access to GPU processing power for AI and video tasks, offering a cost-effective and decentralized alternative to traditional cloud computing. This initiative leverages the Theta Edge Network’s substantial distributed GPU computing power, which ranks among the world’s largest, to support a wide range of AI applications, from language models to text-to-image and text-to-video models.

The blog further elaborates on the technical prowess of the Theta Edge Network, highlighting its capacity to support a wide array of AI applications, thereby democratizing access to GPU processing power. “This vast processing power […] can deliver upwards of 2500 equivalent NVIDIA A100s, enough to train and serve some of the largest language models,” the post reads, illustrating the network’s potential to significantly impact the AI computing landscape.

Theta’s approach to innovation is also reflected in its patented technology for an edge computing platform supported by a blockchain network, enabling a new era of hybrid computing architectures. “This set in motion the capability to build a next generation hybrid computing architecture,” the team noted.

Technical Analysis Of THETA/USD

The Theta token (THETA/USD) has charted a significant bullish breakout on its 1-week timeframe chart. Over the past week, the price has surged with an impressive gain, reflecting a newfound vigor in the buying sentiment. However, the rally has reached a formidable resistance at $2.28 level, which acted as a crucial support in early 2022.

At press time, THETA was trading at approximately $2.01, after a massive move from its recent lows of around $0.55, representing an increase of over 365% in just 20 weeks. Before the breakout, the 100-week and 200-week exponential moving averages (EMAs) served as crucial resistance while the 20-week and 50-week EMAs marked strong support levels.

The breakout above the 100- and 200-week EMA (blue line) can be seen as a major catalyst. Notably, the relative strength index (RSI) is currently positioned at approximately 62.6, which is comfortably below the overbought threshold of 70. This suggests that there may still be room for upward movement before the market is considered overextended.

This thesis is supported by the Fibonacci retracement levels, drawn from the all-time high to the significant low, which shows that the Theta price is still in somewhat bearish territory. It would take a further doubling of the price for THETA to reach the 0.236 level at $4.31911099, which can be seen as major resistance. However, for this to happen, the $2.28 resistance needs to be cleared.

A decisive weekly close above this level could pave the way for a test of the 0.382 level at $6.64707545, followed by the 0.5 and 0.618 levels at $8.5285097 and $10.41008649, respectively. Conversely, a rejection at the current level could see a retest of the 200-week EMA.

The volume indicator shows a modest increase in trading volume accompanying the recent price spike, which lends credence to the breakout. However, traders and investors will be closely monitoring this metric to confirm whether the momentum has the conviction to break through the current resistance zone.

On-chain data shows the Bitcoin supply in profit has reached levels that led to some tops in the past, like the peak of the April 2019 rally.

Bitcoin Supply In Profit Has Shot Up Following BTC’s Latest Run

As pointed out by an analyst in a CryptoQuant Quicktake post, Bitcoin supply in profit has hit very high levels after the asset’s latest rally. The “supply in profit” here refers to a metric that measures the percentage of the total circulating BTC supply that’s currently carrying some amount of unrealized gain.

This indicator works by going through the transaction history of each coin (more precisely, each UTXO) on the blockchain to see what price it was last moved at. Assuming that the previous transfer of the coin was the last time it changed hands, the price at that instance would act as its current cost basis.

As such, if the previous transfer price for any coin was less than the spot value of the cryptocurrency right now, then that particular coin would be holding a profit currently. The supply in profit sums up all such coins and calculates what percentage of the total supply they make up for.

A counterpart indicator called the “supply in loss” does the same for coins of the opposite type (that is, those with a cost basis lower than the current price). This metric’s value can also simply be found by subtracting the supply in profit from 100 (since the total supply must add up to 100%).

Now, here is a chart that shows the trend in the Bitcoin supply in profit over the past few years:

As displayed in the above graph, the Bitcoin supply in profit has naturally shot up recently as the asset’s price has gone through its rally. After the latest continuation of the run towards the $57,000 level, the metric has hit the 95% mark.

This means that 95% of all UTXOs in existence is carrying a profit at the moment. This may not entirely be a positive thing, however, if history is anything to go by.

As the quant has highlighted in the chart, the BTC rally that started in April 2019 topped out just as the supply in profit hit the same high levels as right now. Similarly, the local top in 2020 at the beginning of the last bull market also coincided with these levels.

The reason behind this pattern is likely to be the fact that investors in profit are more likely to sell their coins at any point. Thus, when a large percentage of holders are carrying gains, the probability of a mass selloff can spike up.

That said, in the 2017 and 2021 bull runs, as well as during the November 2021 peak, the indicator did manage to surpass these levels for a while before the top was encountered.

As such, it remains to be seen if the current rally is similar to the likes of the April 2019 run, in which case a top might be hit here, or if it’s a proper bull run, meaning that there might still be a while to go before the peak.

BTC Price

At the time of writing, Bitcoin is trading around the $56,500 level, up 8% over the past week.

Bitcoin Spot ETFs are gunning for a new record after an incredible start to the new week. The price of BTC has risen 8% in the last day, and this has caused euphoria in the market. There could be a number of factors behind this; however, institutional investors seem to be playing a big role as daily inflows continue to rise.

Spot Bitcoin ETF Inflows Cross $400 Million

According to Bloomberg analyst James Seyffart, the Spot BTC ETF inflows are not slowing down. In a screenshot shared by the analyst on Tuesday, Seyffart reveals that inflows into Spot BTC ETFs climbed above $400 million.

The image shows that the Fidelity Wise Origin Bitcoin Fund is leading the charge with $243.3 million in inflows, which accounts for more than 50% of the total inflow. The ARK 21Shares Bitcoin ETF follows behind with significant inflows of $130.6 million. The third-largest inflow to a single fund for the day was recorded in the Bitwise Bitcoin ETF, which saw $37.2 million in inflows.

Other funds, including the Franklin Bitcoin ETF, VanEck Bitcoin Trust, and the WisdomTree Bitcoin Fund, all saw minor inflows of $7.9 million, $6.2 million, and $0.9 million, respectively. In total, the inflows to all six funds came out to $426 million.

However, the Grayscale Bitcoin Trust (GBTC) continues to bleed during this time, with outflows of $22.4 million in the 24-hour period. This brought the total net flows to $403.6 million. At the same time, funds such as the iShares Bitcoin Trust, the Invesco Galaxy Bitcoin ETF, and The Valkyrie Bitcoin Fund all saw negligible inflows during this time frame.

Gunning For A New Record

The inflows into the Bitcoin Spot ETFs over the last day are a testament to the demand that these products are getting from the market. With institutional investors gaining more exposure to BitBTCcoin, demand is expected to rise, especially as the BTC price continues to do well.

The inflow volumes, while not the largest single-day inflows so far, are significant when measured up to others. For example, Seyffart points out that the daily record was from the first day of trading when inflows climbed as high as $655 million. The second-largest single-day net flow was then recorded earlier in the month on February 13 with $631 million. “A big day from $IBIT could push us beyond that Day 1 record,” Seyffart declared.

At the time of writing, the BTC price is experiencing a retracement after reaching a new 2-year high of $57,000. It has seen 8.58% gains in the last 24 hours to trade at $55.900, according to data from CoinMarketCap.

The Bitcoin Fear & Greed Index has risen to its highest level in almost three years, hitting Extreme Greed at rocket speed. Using past performance and indicators, it is possible to deduce where the BTC price is headed next after reaching this new milestone.

Bitcoin Fear & Greed Index At New 2-Year High

The Bitcoin Fear & Greed Index is a measure of investor sentiment and how they are looking at the market. This can help to figure out if investors are currently putting money into the market or if they are taking money out of it.

There are five major categories across the Fear & Greed Index, including Extreme Fear, Fear, Neutral, Greed, and Extreme Greed. The index is ranked on a scale of 0-100, with a range of numbers representing a category of investor sentiment.

Extreme Fear is the lowest on this scale, which ranges from 0 to 25. Then, from 26 to 46, we have the Fear. Both of these categories indicate an unwillingness of investors to enter the market and have often presented as the best time to invest in crypto.

Next on the scale is 47 to 52, which represents the Neutral territory. Then 53 to 75 is Greed when investors are beginning to feel confident in the market. Finally, 76 to 100 is Extreme Greed, which represents peak bullishness. As the Bitcoin Fear & Greed Index currently sits at 79, which is Extreme Greed, it could carry some implications for the market.

Extreme Greed Marks The Top?

Just as the Bitcoin Fear & Greed Index can be helpful in determining what is a good time to buy, it can also provide pointers for when a market top might be in. Looking through the historical performance of the crypto market compared to the Fear & Greed Index, we see a persistent correlation between peak euphoria and the market top.

The most recent example of this is November 2021, when the index’s score climbed to as high as 84, just 5 points shy of the current 79 score. At this point, the price of Bitcoin had risen to $69,000 before meeting resistance, which it will eventually succumb to,

In the following days, sentiment would begin turning, as did the price of Bitcoin. A similar pattern was also seen in February and March 2021 when the index hit a high of 94. The next few days saw interest taper off, marking the peak at that particular point.

If the same pattern were to be repeated in this scenario, then Bitcoin could have another few days of runway before it blows off top. Presently, the cryptocurrency is already seeing significant resistance at $57,000, which could suggest that the top is near.

Bitcoin, the largest cryptocurrency asset by market cap, suddenly took off on Monday, reaching the $57,000 price mark for the first time in the last 26 months, prompting several predictions of a new all-time high before the end of 2025.

Bitcoin Could Hit $200,000 Before 2025 Closes

Amid the recent market surge, cryptocurrency analyst and Chief Executive Officer(CEO) of Factor LLC, Peter Brandt, has expressed his optimism towards Bitcoin, while sharing an intriguing prediction with the crypto community on the social media platform X (formerly Twitter).

Peter Brandt’s analysis delves into Bitcoin’s recent price action and how high the crypto asset could go before 2025 closes. With BTC’s current bull market cycle, Brandt has set an ambitious goal of $200,000 next year.

Brandt’s initial Bitcoin price target for 2025 was $120,000, but with the recent rally, he has placed his mark at the aforementioned price. His modifications came in light of BTC exhibiting a bullish trend, surpassing the “upper boundary of the 15-month channel.”

Furthermore, he highlighted that the current market bull cycle might “end in August or September 2025” if this bullish trend continues. However, according to him, this interpretation will be void if there is a Bitcoin “close below last week’s low.”

The post read:

With the thrust above the upper boundary of the 15-month channel, the target for the current bull market cycle scheduled to end in August or September 2025 is being raised from $120,000 to $200,000. A close below last week’s low will nullify this interpretation.

The analyst’s daring predictions have since caused quite a stir within the crypto space. Several community members have expressed their pleasure in the crypto expert’s analysis.

A pseudonymous X user commented on Brandt’s forecast, saying his overview shares “fascinating insights into Bitcoin’s market projection.” They asserted that “the upward momentum breaking through barriers is indeed intriguing.”

Additionally, they also believe that a close below last week’s low would change Brandt’s narrative, which will highlight the fragile balance in the cryptocurrency space.

Factors That Could Be Responsible For BTC’s Rally

BTC’s current rally is believed to be buttressed by several developments that have garnered attention in the crypto market today. These include increased demand from investors through Exchange-Traded Funds (ETFs) and additional BTC purchases by Microstrategy.

It is noteworthy that since the start of the year, investors’ demands through ETFs have served as a major support for BTC. On January 11, the United States Securities and Exchange Commission (SEC) approved 11 Bitcoin spot ETFs, which has triggered confidence ever since.

Meanwhile, Michael Saylor’s Microstrategy made an additional 3,000 BTC purchase, valued at $155 million before the uptick. This development suggests institutional interest in BTC, indicating confidence in its long-term potential.

Over the past day, the price of Bitcoin has increased by more than 9%, and it is presently trading at $56,321. Its market cap is up by 9% and its trading volume is up by over 235% in the last 24 hours.

Reports have revealed that institutional investors are shifting their focus to Ethereum, displaying a preference compared to the largest cryptocurrency, Bitcoin. Despite Bitcoin’s recent rally to over $55,000, Ethereum’s unique features and potential developmental capabilities continue to capture institutional players’ interest. 

Institutions Favor Ethereum Over Bitcoin

On February 24, cryptocurrency exchange, Bybit, published a research report on its users’ asset allocation. The research examined investors’ hodling and trading behaviours, covering the period from July 2023 to January 2024. Bybit’s report also provided valuable insights into investors’ asset allocation across cryptocurrencies such as altcoins, stablecoins and meme coins, shedding light on the specific coins users are currently bullish or bearish on.  

According to the research report, Ethereum has unexpectedly emerged as the primary cryptocurrency choice for institutional investors. The report revealed that “institutions are betting big on Ethereum,” allocating more of their funds to ETH compared to BTC. 

Bybit has disclosed that the recent rise in interest in Ethereum began in September 2023, when ETH was still trading around $2,000. Subsequently, Ethereum’s market sentiment became more bullish, experiencing a surge in investor interest to about 40% by January 2024. The crypto exchange has confirmed that, as of January 31, ETH has become the single largest cryptocurrency held by institutions.

Bybit’s report also revealed that institutional investors’ interest in Bitcoin began to wane following the United States Securities and Exchange Commission (SEC) approval of Spot Bitcoin ETFs on January 10, 2024. At the time, Bitcoin had experienced massive selling pressures, resulting in investors trimming their BTC holdings to favour other cryptocurrencies. 

The excessive allocation of Ethereum is reportedly attributed to investors anticipating a favourable outcome from Ethereum’s upcoming Decun Upgrade, slated to launch in March 2024. 

Notably, Bybit has disclosed that it is still being determined if the recent shift to Ethereum is a short-term manoeuvre or a more prolonged move. However, the approaching Bitcoin halving in April potentially adds a layer of bearish risks, as projections indicate Bitcoin’s significant rise in value to new all-time highs during the halving phase. 

Retail Investors Think Otherwise

Bybit’s research report also examines the asset allocation trend for retail investors on the cryptocurrency exchange. The report revealed that retail investors are significantly more bullish on Bitcoin than Ethereum, allocating more funds into BTC than ETH despite Ethereum’s recent surge in value. 

Over the past week, Ethereum has experienced a substantial hike in its price, jumping over 7% and outpacing Bitcoin, suggesting a potential for a more extensive upward trajectory. At the time of writing, Ethereum is trading at $3,227, reflecting a 4.05% increase in the last 24 hours, according to CoinMarketCap. 

While Ethereum’s massive rally has successfully elevated the sentiment among institutional investors, retail investors remain less swayed, opting to hold onto or incorporate additional Bitcoin into their diversified portfolio of digital assets. 

In a statement via X (formerly Twitter), Hunter Horsley, CEO of Bitwise Invest, shared insights from a recent memo to advisors and institutional clients penned by Matt Hougan, Bitwise’s Chief Investment Officer. The memo heralded the onset of a new era for Bitcoin, likening its current trajectory in the financial markets to having an ‘initial public offering’ (IPO) moment, signaling a major shift in price discovery mechanisms for the cryptocurrency.

Bitcoin’s IPO Moment

Hougan’s memo elaborates on the seismic shift within the Bitcoin investment landscape, stating, “Previously, only a fraction of the world’s investors could access Bitcoin—mostly self-directed retail investors and technologists. That group drove the price above $40,000. Now, thanks to the ETFs, every investor in the world—financial advisors, family offices, institutions, endowments, and others—can access Bitcoin.” This transition is likened to “going from 10 normal people bidding on a house to 100 very wealthy people bidding on a house, overnight,” thus naturally propelling the price upward.

Emphasizing the magnitude of this shift, the memo reads, “It’s like bitcoin had its initial public offering and the market is now finding its true price,” underlining the transformative impact of ETFs in democratizing access to Bitcoin for a global pool of investors. With the world’s asset and wealth managers controlling approximately $115 trillion in capital, a modest allocation of 1% to Bitcoin could result in over $1 trillion of buying pressure, a figure that is approximately equal to Bitcoin’s current market capitalization.

The memo also draws attention to the pivotal role of long-term Bitcoin holders in this new era of price discovery. With Bitcoin ETFs acquiring more than the total new supply generated by miners, the decision of these long-term holders to sell or hold could significantly influence market dynamics. Hougan notes, “Close to 70% of all bitcoin hasn’t moved in a year,” suggesting a robust holding pattern among investors which could set the stage for price escalations as demand continues to surge.

Further reinforcing Bitwise’s bullish outlook, Ryan Rasmussen, a researcher at the firm, provided a tangible price target during a Yahoo Finance interview. He affirmed, “We think that Bitcoin will certainly set all-time highs in 2024…We still stand by that prediction. […] That previous price is around $69,000, but we think it won’t stop there, we will see at least a 10-15% bump over the all-time high […] That would take us to […] $88,000, and I am still sticking by that with all the excitement in the market.”

“Ultimately what we’re seeing is crypto kind of rising from the ashes of the 2022 market,” Bitwise’s @RasterlyRock says on the crypto rally. “We think that we’re in a multi-year bull cycle and all elements of the crypto space will certainly have their moment.” pic.twitter.com/Fj1ohKUwjS

— Yahoo Finance (@YahooFinance) February 26, 2024

These projections and analyses from Bitwise’s leadership highlight a consensus view of Bitcoin entering a groundbreaking phase of price discovery. The narrative of Bitcoin’s ‘IPO moment’, coupled with expanded investor access through ETFs and the steadfastness of long-term holders, crafts a compelling forecast of growth and new price benchmarks for the world’s leading cryptocurrency.

At press time, BTC traded at $

In a not-so unexpected turn of events, Bitcoin (BTC) has surged to new heights, breaking the $57,000 barrier during the early hours of Tuesday in the Asian market. This price level, not seen since November 2021, marks a significant resurgence for the leading cryptocurrency.

Bitcoin ETFs Experience Unprecedented Activity

Remarkably, the surge in Bitcoin’s price has triggered substantial activity in US-based spot Bitcoin ETFs, excluding Grayscale’s GBTC. According to Bloomberg, these ETFs recorded a record-high $2.4 billion in trading volume on Monday. This surge in trading activity underscores the increasing interest and involvement of institutional investors in the cryptocurrency market.

As of the time of publication, bitcoin had slightly decreased to $56,437, but it was still up about 10% from the previous day. Since the beginning of the year, the price of bitcoin has risen by more than 30%, continuing a protracted surge that has also spurred interest in smaller currencies like Ether and Solana, among speculators.

The demand for Bitcoin is not confined to spot trading alone; a substantial influx of approximately $5.6 billion has poured into recently launched Bitcoin ETFs in the US, which began trading on January 11. This influx of investment signals a broadening interest in Bitcoin, extending beyond the traditional base of digital asset enthusiasts.

It’s official..the New Nine Bitcoin ETFs have broken all time volume record today with $2.4b, just barely beating Day One but about double their recent daily average. $IBIT went wild accounting for $1.3b of it, breaking its record by about 30%. pic.twitter.com/MiCs1rzttM

— Eric Balchunas (@EricBalchunas) February 26, 2024

Bitcoin’s Rally Outshines Traditional Assets

Surprisingly, Bitcoin’s rally this year has outpaced traditional assets such as stocks and gold. The ratio comparing Bitcoin’s price to that of the precious metal has reached its highest level in over two years, indicating a shifting preference among investors towards digital assets.

The overall value of digital assets, including various cryptocurrencies, now stands at a staggering $2.2 trillion, a substantial increase from the lows experienced during the bear market of 2022 when the market value dipped to around $820 billion. This resurgence demonstrates the resilience and growing prominence of digital assets in the financial landscape.

Contrary Market Indicators Fail To Deter Crypto Momentum

In an intriguing development, despite a rise in US Treasury yields, which typically signals expectations for tighter monetary policy, the bullish momentum in the cryptocurrency market remains resilient. Digital tokens like Bitcoin are experiencing notable upward movements, defying conventional market indicators.

Fundstrat Global Advisors’ Head of Digital-Asset Strategy, Sean Farrell, noted in a recent statement that the “bullish momentum in crypto is unfolding despite an uptick in rates,” highlighting the unique dynamics influencing the cryptocurrency market.

MicroStrategy Boosts Corporate Bitcoin Holdings

In the midst of this ongoing rally, MicroStrategy, a notable enterprise software firm recognized for incorporating Bitcoin into its corporate strategy, has announced a significant addition to its cryptocurrency holdings.

The company revealed that it had purchased an additional 3,000 Bitcoin tokens this month, bringing its total Bitcoin holdings to approximately $10 billion. This strategic move by MicroStrategy highlights the growing acceptance of cryptocurrencies as a valuable asset by corporate entities.

Featured image from, chart from TradingView

Bitcoin (BTC), the leading cryptocurrency, has experienced a surge of over 3.6% in the past 24 hours and an impressive 27% in the last month. These gains have propelled the Bitcoin price to reach a new 26-month high of $53,360 on Monday, signaling investors renewed optimism.

BTC Whales Make Waves

Adding to the bullish sentiment surrounding Bitcoin, crypto analyst Ali Martinez highlights the significant activity of the BTC whales, stating that “whales are going parabolic.” 

Notably, In the past month alone, more than 150 new BTC addresses have appeared, each with more than 1,000 BTC. This surge in whale activity indicates a heightened confidence in Bitcoin’s long-term prospects and offers a positive outlook for its future price movements.

Martinez emphasizes a “megaphone pattern” observed on Bitcoin’s daily chart. According to the analyst, this pattern suggests that if BTC maintains its position above the $50,000 level, a sustained close above $53,000 could catalyze a substantial rally toward the $60,520 mark. 

Bitcoin Rally Led By Leveraged Long Positions? 

As detailed in a recent Bloomberg report, BTC’s rise has been driven in part by a surge in spot demand and momentum traders capitalizing on a breakout after a period of consolidation, according to Chris Newhouse, a decentralized finance (DeFi) analyst at Cumberland Labs.

Newhouse highlights that the current price action has seen a relatively balanced level of liquidations, indicating that excessive short liquidations do not drive the recent rally. Instead, leveraged long positions have quickly replaced the liquidated shorts, suggesting a shift in sentiment toward bullishness.

Moreover, the report highlights that open interest for perpetual Bitcoin futures has experienced a noticeable increase, indicating growing market participation and interest in BTC derivatives. 

Simultaneously, Newhouse explains that short positions have been forced to close amid the latest rally, potentially a result of fresh long positions entering the market.

Nevertheless, the cryptocurrency’s ability to sustain its upward momentum and navigate key resistance levels will be crucial in determining its next growth phase.

In a further boost to Bitcoin’s optimism, MicroStrategy, the enterprise software firm known for its strategic Bitcoin purchases, announced that it has acquired an additional 3,000 cryptocurrency tokens this month for approximately $155.4 million. 

With a total Bitcoin holding of about $10 billion, MicroStrategy continues to demonstrate its confidence in its long-term value and potential.

Featured image from Shutterstock, chart from TradingView.com

Ethereum price climbed to a new multi-month high above $3,200. ETH is consolidating while Bitcoin is gaining pace above the $55,000 resistance.

Ethereum extended its increase above the $3,200 resistance zone.
The price is trading above $3,175 and the 100-hourly Simple Moving Average.
There is a key bullish trend line forming with support at $3,150 on the hourly chart of ETH/USD (data feed via Kraken).
The pair could extend its increase toward $3,320 or even $3,450 in the near term.

Ethereum Price Underperforms Bitcoin

Ethereum price remained in a positive zone and extended its increase above the $3,050 resistance. ETH climbed above the $3,200 resistance, but upsides were contained after Bitcoin surged above $55,000.

Ether even spiked above $3,250. A new multi-week high is formed near $3,274 and the price is now consolidating gains. It is trading above the 23.6% Fib retracement level of the upward move from the $3,041 swing low to the $3,274 high.

There is also a key bullish trend line forming with support at $3,150 on the hourly chart of ETH/USD. The trend line is close to the 61.8% Fib retracement level of the upward move from the $3,041 swing low to the $3,274 high.

Ethereum is now trading above $3,175 and the 100-hourly Simple Moving Average. Immediate resistance on the upside is near the $3,250 level. The first major resistance is near the $3,275 level. The next major resistance is near $3,320, above which the price might gain bullish momentum.

Source: ETHUSD on TradingView.com

If there is a move above the $3,400 resistance, Ether could even rally toward the $3,450 resistance. Any more gains might call for a test of $3,500.

Are Dips Limited In ETH?

If Ethereum fails to clear the $3,250 resistance, it could start a downside correction. Initial support on the downside is near the $3,200 level.

The first major support is near the $3,150 zone and the trend line, below which Ether might test $3,130. The next key support could be the $3,100 zone. A clear move below the $3,100 support might send the price toward $3,050 or the 100-hourly Simple Moving Average. Any more losses might send the price toward the $2,880 level.

Technical Indicators

Hourly MACD – The MACD for ETH/USD is gaining momentum in the bullish zone.

Hourly RSI – The RSI for ETH/USD is now above the 50 level.

Major Support Level – $3,150

Major Resistance Level – $3,250