Ethereum gained traction and broke the $ 3,400 resistance zone against the US Dollar. The ETH price is showing positive signs and it could even break above the $ 3,500 level.
- Ethereum started a decent rally above the $ 3,350 and $ 3,400 resistance levels.
- The price is now trading above $ 3,400 and the 100 hourly simple moving average.
- There was a break above a crucial downtrend line with resistance near $ 3,360 on the hourly chart of ETH / USD (data feed via Kraken).
- The pair is now consolidating gains and could even break above the $ 3,500 level in the near term.
Ethereum price points to more gains
Ethereum formed a base above the $ 3,200 level and started a new increase. ETH was able to clear the $ 3,350 resistance level and the 100 hourly simple moving average.
There was also a break above a crucial downtrend line with resistance near $ 3,360 on the ETH / USD hourly chart. It opened the doors for a move above the main resistance level of $ 3,400. Ether extended its move above the $ 3,420 level and tested the $ 3,450 level.
A high is formed near $ 3,450 and the price is now consolidating gains, similar to bitcoin. It is also trading well above the 23.6% Fib retracement level of the recent rally from the $ 3,115 low to $ 3,450 high.
Source: ETHUSD on TradingView.com
An immediate resistance on the upside is near the $ 3,420 level. The first major resistance is near $ 3,450. A clear break above the $ 3,450 level could send the price higher even further. The next big resistance is near $ 3,500. More gains could set the pace for a move towards the $ 3,650 level.
Admitted drops in ETH?
If ethereum does not continue above the $ 3,420 and $ 3,450 resistance levels, a downward correction could begin. An initial support on the downside is near the $ 3,380 level.
The next major support appears to be forming near the $ 3,350 level. Any other downside might require a test of the 50% Fib retracement level of the recent rally from the $ 3,115 low to $ 3,450 high. The next stop for the bears could be near the $ 3,240 level.
MACD per hour – The MACD for ETH / USD is slowly losing pace in the bullish zone.
RSI per hour – The RSI for ETH / USD is now above the 50 level.
Major Support Level – $ 3,350
Major Resistance Level – $ 3,450