- Ethereum slowly rose above the $3,420 area.
- Price is trading above $3,400 and the 100 hourly simple moving average.
- There was a break above a connected bearish trend line with resistance near $3,390 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair needs to break the $3,480 and $3,520 resistance levels to continue higher.
Ethereum price recovers slightly
Ethereum price started a decent recovery wave above the $3,350 level. ETH even broke above the $3,400 level and outperformed Bitcoin. There was a break above a connected bearish trend line with resistance near $3,390 on the hourly chart of ETH/USD.
The pair even broke above the $3,450 resistance zone. A high was formed at $3,482 and the price is now consolidating gains. There was a move below the $3,450 level. The price fell below the 23.6% Fibonacci retracement level of the upward move from the $3,328 low to $3,482 high.
The bulls are now trying to further protect the declines below the $3,420 level. Ethereum is trading above $3,400 and the 100 hourly simple moving average.
On the upside, the price is facing resistance near the $3,480 level. The first major resistance lies near the $3,500 level. The next major hurdle lies near the $3,520 level. A close above the $3,520 level could send Ether towards the $3,550 resistance.
The next key resistance is near $3,620. An upside break above the $3,620 resistance could push the price higher. Any further gains could send Ether towards the $3,740 resistance zone.
Another ETH drop?
If Ethereum fails to break the $3,480 resistance, it could start a fresh decline. The initial support on the downside is near $3,420. The first major support is near the $3,400 area and the 50% Fibonacci retracement level of the upward move from the $3,328 low to $3,482 high.
A clear move below the $3,400 support could push the price towards $3,320. Any further losses could push the price towards the $3,240 level in the near term.
Technical indicators
Hourly MACD – The MACD for ETH/USD is gaining momentum in the bullish zone.
Hourly RSI – The RSI for ETH/USD is now above the 50 zone.
Major Support Level – $3,400
Major Resistance Level – $3,480
