Ethereum gained traction and broke the $3,400 resistance zone against the US Dollar. ETH price is showing positive signs and it could even surpass the $3,500 level.
- Ethereum started a decent increase 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 bearish trend line with resistance near $3,360 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair is now consolidating gains and it could even surpass the $3,500 level in the near term.
Ethereum Price is Eyeing More Gains
Ethereum formed a base above the $3,200 level and started a fresh 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 bearish trend line with resistance near $3,360 on the hourly chart of ETH/USD. It opened the doors for a move above the main $3,400 resistance level. 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 increase from the $3,115 swing 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 the $3,450. A clear break above the $3,450 level could push the price further higher. The next major resistance sits near $3,500. Any more gains could set the pace for a move towards the $3,650 level.
Dips Supported in ETH?
If ethereum fails to continue higher above the $3,420 and $3,450 resistance levels, it could start a downside correction. An initial support on the downside is near the $3,380 level.
The next major support seems to be forming near the $3,350 level. Any more downsides might call for a test of the 50% Fib retracement level of the recent increase from the $3,115 swing low to $3,450 high. The next stop for the bears might be near the $3,240 level.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is slowly losing pace in the bullish zone.
Hourly RSI – The RSI for ETH/USD is now above the 50 level.
Major Support Level – $3,350
Major Resistance Level – $3,450
Source: NewsBTC.com
