Ethereum price started a downward correction from the $3,500 resistance level. ETH fell below $3,440 and may have difficulty staying above $3,380.
- Ethereum is rising above the $3,500 area.
- The price is trading above $3,520 and the 100 hourly simple moving average.
- According to data provided by Kraken, the ETH/USD hourly chart shows a support line forming at $3,450, forming an uptrend line.
- A clear move above the $3,565 resistance zone could see the pair continue its uptrend.
Ethereum price recovers $3,500
Ethereum price remained in a bullish zone above the $3,350 resistance level. ETH extended its gains above the $3,500 resistance level but lagged Bitcoin. There was a surge above the $3,550 level and the price rose to $3,563.
It is currently consolidating gains near the 23.6% Fib retracement level of the upward move from the $3,412 swing low to the $3,563 high. Ethereum is currently trading above $3,500 and the 100-hourly simple moving average.
There is also a connected bullish trend line forming with the $3,450 support level on the hourly chart of ETH/USD. The trend line is close to the 76.4% Fibonacci retracement level of the upward move from the $3,412 swing low to the $3,563 high.
If the price stays above the 100-hour simple moving average, it can attempt a new uptrend. In the uptrend, the price is facing resistance near the $3,550 level. The first major resistance is near the $3,580 level. The next major obstacle is near the $3,650 level.
A close above the $3,650 level could see Ether move towards the $3,700 resistance level. The next major resistance level is near $3,720. A break above the $3,720 resistance level could see the price move towards the $3,800 resistance level in the coming days.
Will ETH fall again?
If Ethereum fails to break the $3,550 resistance level, a downward correction may begin. The initial support level for the downtrend is near $3,500. The first major support level is near the $3,470 area and the 100-hour SMA.
A clear move below the $3,470 support level could see the price rise to $3,440. Further losses could see the price rise to the $3,350 support level in the short term. The next major support level is $3,320.
Technical indicators
MACD every hour – The MACD for ETH/USD is losing momentum in the bullish zone.
Hourly RSI – The RSI for ETH/USD is currently above the 50 zone.
Key Support Level – $3,500
Key Resistance Level – $3,550