Ethereum price remained above the USD 3,400 support zone. ETH recovers losses but needs to clear $3,600 to continue higher in the near term.
- Ethereum extended its decline and tested the USD 3,400 support zone.
- The price is trading above $3,500 and the 100-hourly Simple Moving Average.
- There was a break above a connecting bearish trendline 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 USD 3,500 level. ETH even spiked below the $3,450 support before the bulls appeared. The price traded as low as $3,408 and recently started a recovery wave, much like Bitcoin.
There was a move above the USD 3,500 resistance zone. The price climbed and tested the 50% Fib retracement level of the downward move from the $3,726 swing high to the $3,408 low. Additionally, there was a break above a connecting bearish trendline with resistance at $3,500 on the hourly chart of ETH/USD.
Ethereum is now trading near $3,500 and the 100-hour Simple Moving Average. Immediate resistance is near the $3,600 level or the 61.8% Fib retracement level of the downward move from the $3,726 swing high to the $3,408 low.
Source: ETHUSD on TradingView.com
The first major resistance is around the $3,650 level. The next major resistance is at USD 3,725, above which the price could test the USD 3,780 level. The main hurdle could be USD 3,800, above which Ether could gain bullish momentum. In the mentioned case, the price could rise towards the $3,880 zone. If there is a move above the USD 3,880 resistance, Ethereum could even rise towards the USD 4,000 resistance.
Another drop in ETH?
If Ethereum fails to clear the USD 3,600 resistance, it could trigger another decline. The initial downside support is near the $3,520 level.
The first major support is near the $3,500 zone. The next major support could be the $3,400 zone. A clear move below the USD 3,400 support could send the price towards USD 3,320. Any further losses could send the price towards the USD 3,240 level.
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 level.
Major support level – $3,520
Major resistance level – $3,600
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