Ethereum remained stable above the $3,400 level against the US Dollar. ETH price is rising and eyeing an upside break above the $3,550 resistance zone.
Ethereum started a fresh increase after it tested the $3,400 support zone.
The price is now trading above $3,500 and the 100 hourly simple moving average.
There is a connecting bearish trend line forming with resistance near $3,530 on the hourly chart of ETH/USD (data feed via Kraken).
The pair could start a steady increase if it clears the trend line and $3,550.
Ethereum Price Eyes Upside Break
Ethereum extended decline below the $3,440 level. However, ETH bulls again protected a downside break below the $3,400 support. The bulls were also active near the 50% Fib retracement level of the key increase from the $3,215 swing low to $3,580 high.
It seems like a double bottom pattern was formed near $3,400 and the price started a fresh increase. There was a move above the $3,500 level and the 100 hourly simple moving average.
The price is now facing resistance near the $3,525 level. There is also a connecting bearish trend line forming with resistance near $3,530 on the hourly chart of ETH/USD. The next major resistance is near the $3,580 level. If ether price clears the $3,580 resistance zone, it could start a major increase.
In the stated case, the price could climb above the $3,600 zone. The next major stop for the bulls on the upside may perhaps be $3,750 in the near term.
Dips Limited in ETH?
If ethereum fails to start afresh increase above the $3,580 level, it could start another downside correction. Initial support on the downside is near the $3,450 zone and the 100 hourly simple moving average.
The next major support is near the $3,400 level. If there is a downside break below the $3,400 support, the price could test $3,350. It is near the 61.8% Fib retracement level of the key increase from the $3,215 swing low to $3,580 high. Any more losses may perhaps set the pace for a move towards the $3,220 support zone.
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 levels.
Major Support Level – $3,400
Major Resistance Level – $3,580
Source: NewsBTC
