Could $3,500 Be The Launchpad for a Rally?
Ethereum price remains stable above the $3,500 area. ETH is currently consolidating and may be targeting a break above the $3,750 resistance zone.
- Ethereum started a downside correction below $3,780 and $3,750.
- The price is trading below $3,800 and the 100 hourly simple moving average.
- There is a key bearish trend line forming with resistance at $3,740 on the hourly chart of ETH/USD (data feed via Kraken).
- If the pair holds above the $3,500 support zone, a fresh leg higher may begin.
Ethereum price holds support
Ethereum price extends losses to sub-$3,880 area Bitcoin. ETH fell below the $3,780 and $3,750 support levels. It even surged below $3,550.
A low was formed at $3,488 and the price is now consolidating losses. It recovered some points above $3,550 and $3,600. The price has tested the 50% Fib retracement level of the downward move from the $4,015 swing high to $3,488 low.
However, bears are active below $3,800 and preventing more advantage. Ethereum price is currently trading below $3,800 and the 100 hourly simple moving average. On the bright side, the price seems to be facing a hurdle near $3,750. There is also a key bearish trend line forming with resistance at $3,740 on the hourly chart of ETH/USD.
The first major resistance level is seen near $3,815, the 61.8% Fibonacci retracement level of the downward move from the $4,015 high to $3,488 low.
Major resistance is now forming near $3,880. A clear break above the $3,880 resistance could push the price towards the $4,000 resistance. An upside break above the $4,000 resistance could bring more gains in the coming sessions. In the above scenario, Ethereum could rise towards the $4,150 resistance zone or even $4,220.
ETH falling again?
If Ethereum fails to break above the $3,750 resistance, it may start another decline. Initial support on the downside is near $3,600. The first major support is located near the $3,550 area.
A clear break below the $3,550 support could push the price towards the $3,500 support. If there is further decline, the price may move towards the $3,420 support in the near term. The next key support is located at $3,350.
Technical indicators
Hourly MACD – The MACD for ETH/USD is losing momentum in the bearish zone.
hourly relative strength index – The RSI for ETH/USD is currently below the 50 area.
Major Support Level – $3,500
Major Resistance – $3,750
