TA: Why Ethereum Must Clear $3,400 For Hopes of a Fresh Increase

Aayush Jindal

1 year ago

2 mins read

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Ethereum is facing a major resistance near $3,400 against the US Dollar. ETH price could start a fresh decline if it fails to clear the $3,400 resistance zone.

Ethereum extended its decline below the $3,250 and $3,200 levels.
The price is now trading well below $3,400 and the 100 hourly simple moving average.
There is a key bearish trend line forming with resistance near $3,370 on the hourly chart of ETH/USD (data feed via Kraken).
The pair could extend its decline unless there is a clear break above the $3,400 resistance.

Ethereum Price is Facing Resistance

Ethereum topped near the $3,450 level and started a fresh decline. ETH traded below the $3,220 support level and settled below the 100 hourly simple moving average.

It even broke the $3,160 support and traded as low as $3,115. Recently, there was a recovery wave above the $3,220 level, similar to bitcoin. There was a break above the $3,250 and $3,280 resistance levels. Ether climbed above the 50% Fib retracement level of the recent decline from the $3,450 swing high to $3,115 low.

However, the price is facing resistance near $3,350 and the 100 hourly simple moving average. There is also a key bearish trend line forming with resistance near $3,370 on the hourly chart of ETH/USD.

Source: ETHUSD on TradingView.com

An immediate resistance on the upside is near the $3,350 level. The first major resistance is near the $3,380 and $3,400 levels. A proper move above the $3,400 could increase the chances of a steady increase. The next major resistance sits near $3,500. Any more gains could set the pace for a move towards the $3,620 level.

More Losses in ETH?

If ethereum fails to continue higher above the $3,380 and $3,400 resistance levels, it could start another downward move. An initial support on the downside is near the $3,220 level.

The next major support seems to be forming near the $3,150 level. A downside break below the $3,200 and $3,150 support levels might push the price further lower. In the stated case, the price could even decline below $3,100. The next stop for the bears might be near the $3,000 level.

Technical Indicators

Hourly MACD – The MACD for ETH/USD is slowly gaining pace in the bullish zone.

Hourly RSI – The RSI for ETH/USD is now above the 50 level.

Major Support Level – $3,150

Major Resistance Level – $3,400

Aayush Jindal

Aayush Jindal, a luminary in the world of financial markets, whose expertise spans over 15 illustrious years in the realms of Forex and cryptocurrency trading. Renowned for his unparalleled proficiency in providing technical analysis, Aayush is a trusted advisor and senior market expert to investors worldwide, guiding them through the intricate landscapes of modern finance with his keen insights and astute chart analysis.

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