Ethereum price remained above the $3,400 support zone. ETH is recovering losses but must clear $3,600 to continue rising in the near term.
- Ethereum extended its decline and tested the $3,400 support zone.
- The price is trading above $3,500 and the 100 hourly simple moving average.
- There was a break above a downtrend line with resistance at $3,500 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could gain bullish momentum if it remains above the $3,500 support zone.
Ethereum Price Aims Higher
Ethereum Price extended its decline below the $3,500 level. ETH even peaked below the $3,450 support before the bulls appeared. The price traded as low as $3,408 and recently began a recovery wave, as Bitcoin.
There was a move above the $3,500 resistance zone. The price rose and tested the 50% Fibonacci retracement level of the downward move from the $3,726 swing high to $3,408 low. Additionally, there was a break above a downtrend line with resistance at $3,500 on the hourly ETH/USD chart.
Ethereum is now trading near $3,500 and the 100 hourly simple moving average. Immediate resistance is near the $3,600 level or the 61.8% Fibonacci retracement level of the downward move from the $3,726 swing high to $3,408 low.
Source: ETHUSD on TradingView.com
The first major resistance is near the $3,650 level. The next key resistance lies at $3,725, above which the price could test the $3,780 level. The main hurdle could be $3,800, above which Ether could gain bullish momentum. In the stated case, the price could rise to the $3,880 zone. If there is a move above the $3,880 resistance, Ethereum could even rise towards the $4,000 resistance.
Another decline in ETH?
If Ethereum fails to overcome the $3,600 resistance, it could begin another decline. Initial downside support is near the $3,520 level.
The first major support is near the $3,500 zone. The next important support could be the $3,400 zone. A clear move below the $3,400 support could send the price towards $3,320. Further losses could send the price towards the $3,240 level.
Technical Indicators
MACD per hour – The MACD for ETH/USD is gaining momentum in the bullish zone.
RSI per hour – The RSI for ETH/USD is now above the 50 level.
Major support level – $3,520
Main resistance level – $3,600
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