Ethereum price eyes $3,600 despite facing stiff resistance

Ethereum price has flipped a crucial barrier, suggesting an increase in buying pressure. This move comes after ETH experienced a massive uptrend over the past week. Going forward, investors can expect more gains from the smart contract token.

Ethereum price to define the macro outlook

Ethereum price rallied 41% in nearly two weeks, starting from January 27. This exponential ascent pushed ETH to produce a daily candlestick close above the 50-day Simple Moving Average (SMA) at $3,196. This development sets a bullish tone, implying that further gains are plausible.

A potential spike in buying pressure is likely to push Ethereum price to retest the $3,413 hurdle. If buyers manage to flip this blockade into a support floor, it will set the stage for an ascent to $3,631, where the 100 and 200-day SMAs are likely to crossover. 

Therefore, market participants can expect the upside for Ethereum price to be limited at $3,631 or a 13% gain from $3,196.

ETH/USDT 1-day chart

While this outlook is plausible, it relies heavily on the resurgence of buying pressure. A failure to do so could result in a retracement to the immediate support levels at $3,081 and $2,792. Ethereum price could consolidate around these areas and attempt an uptrend. 

However, a breakdown of the $2,792 barrier could trigger a potential descent to the $2,324 barrier. A daily candlestick close below this foothold will create a lower low and invalidate the bullish thesis for Ethereum price.