Ethereum Bulls In Control, Why ETH Could Rally Above $3,500
Ethereum gained strength above $3,200 and $3,350 against the US Dollar. ETH price could start a fresh rally if it clears $3,450 and $3,500.
- Ethereum started a steady increase after it settled 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 a key bullish trend line with support near $3,400 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could might remain supported near the $3,300 and $3,250 levels.
Ethereum Price Stuck Below Resistance
Ethereum formed a base above the $3,000 level and started a fresh increase. ETH broke the $3,150 and $3,200 resistance levels to move into a positive zone.
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 declined 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 a key bullish trend 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
An immediate resistance on the upside is near the $3,400 level. The first major resistance is near the $3,420 level. A break above the $3,420 level could start a steady increase. The next main resistance is near the $3,500 zone, above which the price might accelerate higher.
Dips Limited in ETH?
If ethereum fails to continue higher above the $3,420 and $3,500 resistance levels, it could start a fresh downside correction. An initial support on the downside is near the $3,300 level.
The first key support is now forming near the $3,250 level and the 100 hourly simple moving average. If ether fails to stay above $3.250, it could test the $3,230. It is near the 50% Fib retracement level of the upward move from the $2,970 swing low to $3,489 high.
Hourly MACD – The MACD for ETH/USD is now losing pace in the bullish zone.
Hourly RSI – The RSI for ETH/USD is just below the 50 level.
Major Support Level – $3,250
Major Resistance Level – $3,420