Ethereum Price Poised for Recovery: Will It Reignite The Uptrend?
Ethereum price is moving higher from the $3,550 area. ETH is showing bullish signs and may break above the $3,680 resistance zone soon.
- Ethereum started a downward correction and retested the $3,550 area.
- The price is trading above $3,600 and the 100 hourly simple moving average.
- There is a bearish trend line connecting with resistance at $3,650 on the hourly chart of ETH/USD (data via Kraken).
- If the $3,650 area is exceeded, the pair may resume its upward move.
Ethereum price sees new surge
Ethereum price failed to break above the $3,800 resistance zone and corrected some gains, e.g. Bitcoin. ETH fell below the $3,650 and $3,600 support levels. It even retested the support at $3,550.
A low was formed at $3,557 and the price is now attempting a new leg higher. The price rose above $3,600 and $3,620. The price tested the 50% Fib retracement level of the downward move from the swing high of $3,762 to low of $3,557.
Ethereum price is currently trading above $3,600 100 hour simple moving average. On the bright side, the price seems to be facing a hurdle near the $3,650 level. There is also a bearish trend line forming with resistance at $3,650 on the hourly chart of ETH/USD.
The first major resistance level is seen near $3,685, the 61.8% Fibonacci retracement level of the downward move from the $3,762 high to $3,557 low. Major resistance is now forming near $3,750.
A clear break above the $3,750 resistance may push the price towards the $3,800 resistance. An upside break above the $3,800 resistance could bring more gains in the coming sessions. In the above scenario, Ethereum could rise towards the $3,880 resistance zone or even $3,920.
ETH slides again?
If Ethereum fails to break the $3,650 resistance, it may start another decline. Initial support on the downside is near $3,600. The first major support is located near the $3,580 area.
A clear break below the $3,580 support could push the price towards the $3,550 support. If there is further decline, the price may move towards the $3,440 support in the near term. The next key support is located at $3,350.
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 – $3,550
Major Resistance – $3,685
