Bulls Ready for The Next Move?
Ethereum price started a new round of gains, breaking above the $3,400 area. ETH is consolidating and may target a break above the $3,500 resistance.
- Ethereum started a new leg of gains, breaking above the $3,320 and $3,400 levels.
- The price is trading above $3,400 and the 100 hourly simple moving average.
- There is a key bullish trend line forming with support at $3,400 on the hourly chart of ETH/USD (data via Kraken).
- The pair may gain bullish momentum if it breaks above the $3,485 resistance zone.
Ethereum price remains above support
Ethereum price maintained support above $3,220 and started a new round of gains, while Bitcoin Correction gain. ETH accelerated above the $3,420 and $3,450 resistance levels.
The bulls even pushed the price above the $3,500 resistance. A high was formed at $3,545 and the price corrected some of the gains recently. It fell below the $3,500 level. The price fell below the 50% Fib retracement level of the upward move from the $3,289 swing low to $3,545 high.
However, bulls are active near the $3,400 level. There is also a key bullish trend line forming with support at $3,400 on the hourly chart of ETH/USD. Trendline near 61.8% Fib Retracement move up From a swing low of $3,289 to a high of $3,545.
Ethereum price is currently trading above $3,420 and the 100 hourly simple moving average. On the bright side, the price seems to be facing a hurdle near the $3,485 level.
The first major resistance level is near $3,500. Major resistance is currently forming near $3,550. A clear break above the $3,550 resistance may push the price towards the $3,650 resistance. An upside break above the $3,650 resistance may bring more gains in the coming sessions. In the above scenario, Ethereum could rise towards the $3,720 resistance zone or even $3,880.
What are the disadvantages of ETH?
If Ethereum fails to break above the $3,500 resistance, it may start another decline. Initial support on the downside is near $3,420. The first major support is located near the $3,400 area and trend line.
A clear break below the $3,400 support could push the price towards $3,350. Any further losses may push the price towards the $3,285 support in the near term. The next key support level is $3,220.
Technical indicators
Hourly MACD – The MACD for ETH/USD is gaining momentum in the bullish zone.
hourly relative strength index – The RSI for ETH/USD is currently above the 50 area.
Major Support Level – $3,400
Major Resistance – $3,550
