Ethereum price started a recovery wave from the $3,230 zone. ETH climbed above $3,350 but is now facing strong resistance at $3,420.
- Ethereum started an upward correction from the USD 3,240 support zone.
- The price is trading below $3,420 and the 100-hourly Simple Moving Average.
- A major bearish trendline is forming with resistance near $3,410 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair needs to overcome the USD 3,420 and USD 3,450 resistance levels to continue higher.
Ethereum Price Eyes Recovery
Ethereum price extended losses and traded below the $3,350 zone. ETH even tested the USD 3,240 support zone before starting a recovery wave like Bitcoin. There was a decent increase above the USD 3,300 and USD 3,320 levels.
The bulls pushed the price above $3,350. It even peaked above the 61.8% Fib retracement level of the downward move from the $3,518 swing high to the $3,230 low. However, the price seems to be facing strong resistance near the $3,420 zone.
There is also a major bearish trendline forming with resistance around $3,410 on the hourly chart of ETH/USD. Ethereum is still trading below $3,420 and the 100-hourly Simple Moving Average.
On the upside, the price is facing hurdles near the trendline and USD 3,420. The first major resistance is around the $3,450 level. It is close to the 76.4% Fib retracement level of the downward move from the $3,518 swing high to the $3,230 low.
A close above the USD 3,450 level could send Ethereum towards the USD 3,520 resistance. The next major resistance is near USD 3,550. An upside break above the USD 3,550 resistance could push the price higher. The next major resistance is at USD 3,620, above which the price could gain strength and rise towards the USD 3,650 level. Even more gains could send Ether towards the USD 3,720 resistance zone.
Another drop in ETH?
If Ethereum fails to clear the USD 3,420 resistance, it could trigger another decline. The initial downside support is near $3,375. The first major support is near the $3,350 zone.
A clear move below the USD 3,350 support could push the price towards USD 3,280. Any further losses could send the price towards the USD 3,240 level in the near term.
Technical indicators
hourly MACD – 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 – $3,300
Major resistance level – $3,420