Ethereum price struggled to recover above the $3,420 resistance zone. ETH is consolidating and could fall again if there is a move below $3,320.
- Ethereum is struggling to gain pace for a move above the $3,420 zone.
- The price is trading below $3,400 and the 100 hourly simple moving average.
- There is a bearish trendline forming with resistance near $3,400 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair must overcome the $3,400 and $3,425 resistance levels to continue rising.
Ethereum Price Faces Hurdles
Ethereum price started a decent recovery wave above the $3,320 level. ETH even surpassed the $3,350 level, but bears were active near $3,420. A high was formed at $3,426 and the price corrected gains as Bitcoin.
There was a move below the $3,380 level. The price fell below the 23.6% Fibonacci retracement level of the upward move from the $3,230 swing low to $3,426 high. The bulls are now trying to protect further downside below the $3,320 level.
Ethereum is still trading below $3,400 and the 100 hourly simple moving average. On the positive side, the price is facing obstacles close to the trend line and $3,400. There is also a bearish trend line forming with resistance near $3,400 on the hourly ETH/USD chart.
The first major resistance is near the $3,420 level. The main resistance is near the $3,450 level. A close above the $3,450 level could send Ether towards the $3,550 resistance.
The next key resistance is near $3,620. A bullish breakout above the $3,620 resistance could push the price higher. The next hurdle lies at $3,680, above which the price could gain momentum and rise towards the $3,720 level. Any further gains could send Ether towards the $3,880 resistance zone.
Another drop in ETH?
If Ethereum fails to overcome the $3,400 resistance, it could begin another decline. Initial downside support is near $3,350. The first major support lies near the $3,320 zone and the 50% Fibonacci retracement level of the upward movement from the $3,230 low to $3,426 high.
A clear move below the $3,320 support could push the price towards $3,250. Further losses could send the price towards the $3,200 level in the near term.
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 zone.
Major support level – $3,320
Main resistance level – $3,400