Ethereum price started a recovery wave in the $3,050 zone. ETH is up more than 10% and is now struggling to overcome the $3,550 resistance zone.
- Ethereum started a decent recovery wave in the $3,050 zone.
- The price is trading above $3,350 and the 100 hourly simple moving average.
- There was a break above a major downtrend line with resistance at $3,400 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could continue rising if it stays above the $3,550 resistance zone.
Ethereum price begins recovery
Ethereum price extended its decline below the $3,350 and $3,200 levels as Bitcoin. ETH even fell below the $3,150 support level before the bulls appeared. It tested the $3,050 zone.
A low was formed at $3,059 and the price is rising. There was a strong recovery wave above the $3,350 resistance. The price surpassed the 50% Fib retracement level of the descending wave from $3,675 high to $3,059 low.
There was also a pause above a main downtrend line with resistance at $3,400 on the hourly ETH/USD chart. Ethereum price is now trading above $3,400 and the 100 hourly simple moving average.
On the upside, immediate resistance is near the $3,520 level or the 76.4% Fibonacci retracement level of the descending wave from the $3,675 swing high to $3,059 low. The first major resistance is near the $3,550 level. The next key resistance lies at $3,675, above which the price could gain bullish momentum.
Source: ETHUSD on TradingView.com
In the stated case, Ether could rise towards the $3,820 level. If there is a move above the $3,820 resistance, Ethereum could even rise towards the $4,000 resistance. Any additional winnings may require a test of $4,080.
Another decline in ETH?
If Ethereum fails to overcome the $3,550 resistance, it could begin another decline. Initial downside support is near the $3,380 level.
The first major support is near the $3,320 zone. The next important support could be the $3,220 zone. A clear move below the $3,220 support could send the price towards $3,150. Further losses could send the price towards the $3,050 level.
Technical Indicators
MACD per hour – The MACD for ETH/USD is losing momentum in the bullish zone.
RSI per hour – The RSI for ETH/USD is now above the 50 level.
Major Support Level – $3,380
Main resistance level – $3,550
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