Reason to trust
How Our News is Made
Strict editorial policy that focuses on accuracy, relevance, and impartiality
Ad discliamer
Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.
Ethereum corrected lower below $3,500 against the US Dollar. ETH price remained supported and it is now eyeing a key upside break above the $3,650 resistance.
- Ethereum started a fresh increase above the $3,500 resistance level.
- The price is now trading above $3,550 and the 100 hourly simple moving average.
- There was a break above a key bearish trend line with resistance near $3,560 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could gain bullish momentum once there is a clear break above $3,640 and $3,650.
Ethereum Price Eyes Key Upside Break
Ethereum started a downside correction from the $3,634 swing high. ETH traded below the $3,550 support level and the 100 hourly simple moving average.
However, the price remained well bid above the $3,350 support. A low was formed near $3,375 and the price started a fresh increase. There was a clear break above the $3,500 and $3,550 resistance levels. Ether surpassed the 50% Fib retracement level of the downward move from the $3,634 swing high to $3,375 low.
There was also a break above a key bearish trend line with resistance near $3,560 on the hourly chart of ETH/USD. The pair is now trading above $3,550 and the 100 hourly simple moving average.
Source: ETHUSD on TradingView.com
It is also well above the 76.4% Fib retracement level of the downward move from the $3,634 swing high to $3,375 low. An immediate resistance on the upside is near the $3,600 level. The first major resistance is near the $3,620 level.
The next major resistance is near the $3,650 level, above which the price might start a fresh surge. In the stated case, the price could climb towards the $3,720 level. The next key resistance might be $3,800.
Dips Limited in ETH?
If ethereum fails to continue higher above the $3,620 and $3,650 resistance levels, it could start a fresh downside correction. An initial support on the downside is near the $3,550 level.
The first key support is now forming near the $3,520 level and the 100 hourly simple moving average. Any more losses could lead ether price towards the $3,400 support zone.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is gaining pace in the bullish zone.
Hourly RSI – The RSI for ETH/USD is now above the 50 level.
Major Support Level – $3,500
Major Resistance Level – $3,650
