Ethereum gained strength above $3,200 and $3,350 against the US Dollar. ETH price could start a new high if it goes above $3450 and $3500.
- Ethereum started to increase steadily after settling above the $3,200 level.
- The price is now trading above $3,300 and the 100 hourly simple moving average.
- There was a break below the major uptrend line with support near $3,400 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair may remain supported near the $3,300 and $3,250 levels.
Ethereum price stuck below resistance
Ethereum formed a base above the $3000 level and started a new rally. ETH broke the $3,150 and $3,200 resistance levels to move into positive territory.
There was also a close above the $3,300 level and the 100 hourly simple moving average. The price traded as high as $3,489 and recently corrected lower, similar to Bitcoin. Ether fell below the $3,400 support level. There was a break below the 23.6% Fib retracement level of the upward move from the $2,970 swing low to $3,489 high.
There was a break below the major uptrend line with support near $3,400 on the hourly chart of ETH/USD. It is now trading above the $3,320 support level.
Source: ETHUSD on TradingView.com
There is an immediate resistance on the upside near the $3,400 level. The first major resistance is near the $3,420 level. A break above the $3,420 level could lead to a steady increase. The next major resistance is near the $3,500 region, above which the price may accelerate higher.
Dips Limited in ETH?
If Ethereum fails to continue rising above the $3,420 and $3,500 resistance levels, it may start a new downside correction. There is initial support on the downside near the $3,300 level.
The first major support is now forming near the $3250 level and the 100 hourly simple moving average. If Ether fails to stay above $3,250, it could test $3,230. It is close to the 50% Fib retracement level of the upward move from the $2,970 swing low to $3,489 high.
Technical Indicators
MACD per hour – ETH/USD’s MACD is now losing momentum in bullish territory.
Hourly RSI – The RSI for ETH/USD is just below the 50 level.
Key Support Level – $3250
Key Resistance Level – $3,420