Ethereum price started to rise again from the USD 3,350 support zone. ETH is outperforming Bitcoin and could rise further towards the USD 3,650 resistance.
- Ethereum is gaining speed against the key support zone at USD 3,365.
- The price is trading above USD 3,450 and the 100-hourly Simple Moving Average.
- There was a break above a key bearish trendline with resistance near $3,460 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair formed a double bottom pattern and gained pace above the $3,500 resistance.
Ethereum price provides important support
Ethereum price remained well above the USD 3,350 support zone. ETH formed a base and started a new rise after forming a double bottom pattern near $3,350 as discussed yesterday.
It outperformed Bitcoin and broke the USD 3,450 resistance. There was a clear move above the 50% Fib retracement level of the downward move from the $3,650 swing high to the $3,350 low. Additionally, there was a break above a key bearish trendline with resistance around $3,460 on the hourly chart of ETH/USD.
Ethereum is now trading above $3,450 and the 100-hourly Simple Moving Average. It is also showing positive signs for more gains above the USD 3,535 level. On the upside, the price could face resistance near the $3,580 level or the 76.4% Fib retracement level of the downward move from the $3,650 swing high to the $3,350 low.
The first major resistance is around the $3,650 level. An upside break above the USD 3,650 resistance could push the price higher. The next major resistance is at USD 3,720, above which the price could gain strength and rise towards the USD 3,750 level.
A clear move above the $3,750 level could send Ether towards the $3,880 resistance. Any further gains could send Ether towards the $4,000 resistance zone in the coming days.
Another drop in ETH?
If Ethereum fails to clear the USD 3,580 resistance, it could trigger another decline. The initial downside support is near $3,500. The first major support is at $3,450.
A clear move below the USD 3,450 support could push the price towards USD 3,350. Any further losses could send the price towards the USD 3,220 level in the near term.
Technical indicators
hourly MACD – The MACD for ETH/USD is gaining strength in the bullish zone.
RSI per hour – The RSI for ETH/USD is now above the 50 zone.
Major support level – $3,450
Major resistance level – $3,580