Ethereum price started a downward correction from the USD 3,500 resistance zone. ETH fell below $3,440 and could struggle to stay above $3,380.
- Ethereum is moving higher above the $3,500 zone.
- The price is trading above USD 3,520 and the 100-hourly Simple Moving Average.
- A connecting bullish trendline is forming with support at $3,450 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could continue to rise if there is a clear move above the $3,565 resistance zone.
Ethereum price reclaims $3,500
Ethereum price remained in a bullish zone above the USD 3,350 resistance zone. ETH extended its rise above the $3,500 resistance but lagged behind Bitcoin. There was a spike above the USD 3,550 level and the price traded as high as USD 3,563.
It is now consolidating gains near the 23.6% Fib retracement level of the upward move from the $3,412 swing low to the $3,563 high. Ethereum is now trading above $3,500 and the 100-hourly Simple Moving Average.
A connecting bullish trendline is also forming with support at $3,450 on the hourly chart of ETH/USD. The trendline is close to the 76.4% Fib retracement level of the upward move from the $3,412 swing low to the $3,563 high.
If the price remains above the 100-hour Simple Moving Average, another increase can be attempted. On the upside, the price is facing resistance around the $3,550 level. The first major resistance is around the $3,580 level. The next major hurdle is near the USD 3,650 level.
A close above the $3,650 level could send Ether towards the $3,700 resistance. The next major resistance is near USD 3,720. An upside break above the USD 3,720 resistance could send the price higher towards the USD 3,800 resistance zone in the coming days.
Another drop in ETH?
If Ethereum fails to clear the USD 3,550 resistance, it could initiate a downward correction. The initial downside support is near $3,500. The first major support is near the $3,470 zone and the 100-hourly Simple Moving Average.
A clear move below the USD 3,470 support could push the price towards USD 3,440. Any further losses could send the price towards the USD 3,350 support level in the near term. The next major support is at $3,320.
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 – $3,500
Major resistance level – $3,550