Ethereum gained and surpassed the $3,500 level against the US Dollar. ETH price is trading in positive territory and could rise further towards $3,700.
- Ethereum started a fresh increase above the $3,500 resistance level.
- The price is now trading above $3,400 and the 100 hourly simple moving average.
- There is a major bullish trend line forming with support near $3,450 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could continue rising as long as it is above the $3,400 support area in the near term.
Ethereum price extends its rally
Ethereum started a steady increase above the $3,350 resistance area. ETH managed to climb above the $3,450 level and the 100 hourly simple moving average.
The price even cleared the $3,500 area. A top formed near $3,539 and it is now correcting the gains. Ether corrected lower below the $3,500 level. It is now trading near the 23.6% Fib retracement level of the recent increase from the $3,275 swing low to $3,339.
It is now consolidating near the $3480 area. There is also a major bullish trend line forming with support near $3,450 on the hourly chart of ETH/USD. There is an immediate resistance on the upside near the $3,500 level. The first major resistance is near the $3,540 level.
Source: ETHUSD on TradingView.com
The next major resistance is near the $3,550 level, when above it, the price could accelerate towards $3,700. Any further gains could set the pace for a larger increase towards the $3800 level in the near term.
Support dips in ETH?
If Ethereum fails to continue rising above the $3,540 and $3,550 resistance levels, it may start a new downside correction. There is initial support on the downside near the $3,450 level.
The first major support is now forming near the $3,400 level. It is close to the 50% Fib retracement level of the recent increase from the $3,275 swing low to $3,339. Any further losses could push the ether price towards the $3,375 support area and the 100 hourly simple moving average. The next major support might be near the $3,320 level.
Technical Indicators
MACD per hour – ETH/USD’s MACD is losing momentum in bullish territory.
Hourly RSI – The RSI for ETH/USD is correcting lower towards the 50 level.
Key Support Level – $3,400
Key Resistance Level – $3550
