Ethereum price struggled to recover above the USD 3,420 resistance zone. ETH is consolidating and could fall again if a move below $3,320 occurs.
- Ethereum is struggling to pace a move above the $3,420 zone.
- The price is trading below $3,400 and the 100-hourly Simple Moving Average.
- A connecting bearish trendline is forming with resistance near $3,400 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair needs to overcome the USD 3,400 and USD 3,425 resistance levels to continue higher.
Ethereum price faces hurdles
Ethereum price started a decent recovery wave above the USD 3,320 level. ETH even reached the $3,350 level, but the bears were active around $3,420. A high was reached at $3,426 and the price corrected gains like those of Bitcoin.
There was a move below the USD 3,380 level. The price fell below the 23.6% Fib retracement level of the upward move from the $3,230 swing low to the $3,426 high. The bulls are now trying to protect more downside below the USD 3,320 level.
Ethereum is still trading below $3,400 and the 100-hourly Simple Moving Average. On the upside, the price is facing hurdles near the trendline and USD 3,400. There is also a connecting bearish trendline forming with resistance around $3,400 on the hourly chart of ETH/USD.
The first major resistance is around the $3,420 level. The key resistance is around the $3,450 level. A close above the USD 3,450 level could send Ether towards the USD 3,550 resistance.
The next major resistance is near USD 3,620. An upside break above the USD 3,620 resistance could send the price higher. The next hurdle is at USD 3,680, above which the price could gain strength and rise towards the USD 3,720 level. Even more gains could send Ether towards the USD 3,880 resistance zone.
Another drop in ETH?
If Ethereum fails to clear the USD 3,400 resistance, it could trigger another decline. The initial downside support is near USD 3,350. The first major support is near the $3,320 zone and the 50% Fib retracement level of the upward move from the $3,230 swing low to the $3,426 high.
A clear move below the USD 3,320 support could push the price towards USD 3,250. Any further losses could send the price towards the USD 3,200 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 – $3,320
Major resistance level – $3,400