Ethereum price fell again, retesting the $3,365 support area. If ETH holds above $3,365, it could start a new increase towards $3,700.
- Ethereum still holds the key $3,365 support area.
- The price is trading below $3,550 and the 100-hour simple moving average.
- The hourly chart of ETH/USD (data feed via Kraken) shows a bearish trend line tying with resistance near $3,500.
- The pair may form a double bottom pattern and rise towards the $3,700 resistance level.
Ethereum Price Retests Major Support
Ethereum price failed to gain pace above the $3,580 and $3,650 resistance levels. ETH reacted to the same decline as Bitcoin, falling below the $3,500 support level. There was a sharp decline below $3,420, but the uptrend became active again near $3,350.
A low was formed near $3,350 and the price is rising again. There was a move above the resistance levels of $3,380 and $3,400. The price was able to clear the 23.6% Fib retracement level of the downward move from the $3,649 swing high to the $3,350 low.
Ethereum is currently trading below $3,550 and the 100-hour simple moving average. It looks like the price could form a double bottom pattern and rise towards the $3,700 resistance level. In case of a fresh price increase, the price may face resistance near the $3,460 level.
The first major resistance is near the $3,500 level or the 50% Fib retracement level for a downside move from the $3,649 swing high to the $3,350 low. Additionally, on the hourly chart of ETH/USD, there is a bearish trend line connecting with resistance near $3,500.
An upside reversal above the $3,500 resistance could push the price higher. The next major resistance level is $3,580, above which the price may gain traction towards the $3,650 level.
A clear break above the $3,650 level could lead Ethereum towards the $3,720 resistance level. Further gains could lead Ether towards the $3,800 resistance zone.
Discontinuation of ETH?
If Ethereum fails to clear the $3,500 resistance, it may continue to fall. Initial support on the downside is near $3,380. The first major support is at $3,350.
A clear decline below the $3,350 support could push the price towards $3,250. More losses could push the price towards the $3,120 level in the near term.
technical indicators
Hourly MACD – ETH/USD MACD is losing momentum in bearish territory.
RSI per hour – The RSI for ETH/USD is now below the 50 area.
Key Support Level – $3,350
Key Resistance Level – $3,500