Ethereum price remained above the $3,400 support zone. ETH is recovering its losses, but needs to clear $3,600 to continue rising in the near term.
- Ethereum extended its downtrend and tested the $3,400 support area.
- The price is trading above $3,500 and the 100-hour simple moving average.
- On the hourly chart of ETH/USD (data feed via Kraken), a breakout occurred above a bearish trend line connecting with resistance at $3,500.
- A stay above the $3,500 support area could provide bullish momentum.
Ethereum Price Aims Higher
Ethereum price continued its downward trend below the $3,500 level. ETH also surged below the $3,450 support level before an upward move took place. The price traded as low as $3,408 and recently began a Bitcoin-like recovery.
There was a move above the $3,500 resistance zone. The price rose and tested the 50% Fib retracement level moving down from the $3,726 swing high to the $3,408 low. Additionally, the bearish trend line connecting the $3,500 resistance level was broken on the ETH/USD hourly chart.
Ethereum is currently trading near $3,500 and the 100-hour simple moving average. Immediate resistance is near the $3,600 level or the 61.8% Fib retracement level of the downward move from the $3,726 swing high to the $3,408 low.
Source: ETHUSD on TradingView.com
The first major resistance is near the $3,650 level. The next major resistance level is $3,725, above which the $3,780 level could be tested. The major hurdle could be $3,800, above which Ethereum could show strength. If stated, the price could rise to the $3,880 region. If there is a move above the $3,880 resistance, Ethereum may rise to the $4,000 resistance.
Another drop in ETH?
If Ethereum fails to clear the $3,600 resistance, it could begin another downtrend. Initial support for the downside is near the $3,520 level.
The first major support is near the $3,500 area. The next major support could be the $3,400 zone. A clear decline below the $3,400 support could lead the price towards $3,320. Any more losses could push the price down to the $3,240 level.
technical indicators
Hourly MACD – ETH/USD MACD is gaining momentum in the bullish zone.
RSI per hour – The RSI for ETH/USD is now above the 50 level.
Key Support Level – $3,520
Key Resistance Level – $3,600
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