Ethereum Eyes $3,250 Breakout as Bulls Target $3,500

Ethereum price action has demonstrated significant strength, starting a fresh increase from a base above the $2,880 support level. Mirroring broader market movements often seen with Bitcoin (BTC), ETH bulls successfully pushed the price above the psychologically important $3,000 and $3,120 resistance levels. This move has established a new trading range, with ETH currently positioned above $3,150 and, critically, above the 100-hourly Simple Moving Average—a key indicator of short-term bullish sentiment.

The technical structure on the hourly chart for the ETH/USD pair, with data sourced from the Kraken exchange, reveals a constructive setup. A bullish trend line is forming, providing dynamic support at the $3,120 level. This trend line, coupled with the price holding above the 23.6% Fibonacci retracement level of the recent swing from $2,718 to $3,239, suggests the uptrend remains intact. The immediate focus for traders is squarely on the $3,250 resistance zone, a level that has recently capped upward momentum.

A decisive settlement above the $3,250 zone is viewed as the catalyst for the next leg higher in this cryptocurrency rally. Should Ethereum achieve this breakout, the path of least resistance points toward subsequent key levels. The initial target post-breakout is near $3,265, followed by the first major resistance at $3,320. A clear move above $3,320 could send ETH price accelerating toward the $3,450 resistance region.

An upside break above $3,450 would significantly bolster the bullish case, potentially opening the door for gains toward the $3,500 resistance zone, with an extension to $3,540 appearing feasible in the near term. This optimistic scenario is supported by key technical indicators aligning in favor of the bulls. The hourly Moving Average Convergence Divergence (MACD) for ETH/USD is not only in the bullish zone but is also gaining momentum, signaling increasing buying pressure. Furthermore, the hourly Relative Strength Index (RSI) is positioned above the neutral 50 level, confirming that momentum currently favors the buyers.

While the technical setup leans bullish, the market’s failure to clear the $3,250 resistance could prompt a fresh decline. In this scenario, Ethereum price would need to find support at lower levels to prevent a deeper retracement. The initial support on the downside is situated near the $3,160 level. However, the first major support cluster is more significant, sitting near the $3,120 zone—coinciding with the aforementioned bullish trend line.

A clear move below the $3,120 support would represent a breakdown of the current bullish structure and could push the price toward the $3,050 support level. Any further losses might see ETH retreat toward the $2,980 region, which aligns with the 50% Fibonacci retracement level of the recent upswing from the $2,718 swing low to the $3,239 high. Beyond that, the next key support levels are identified at $2,920 and the crucial $2,880 zone, which previously acted as the launchpad for the current increase.