Market
Could $3,500 Be The Launchpad for a Rally?
Ethereum price remained stable above the $3,500 zone. ETH is now consolidating and might aim for a move above the $3,750 resistance zone.
- Ethereum started a downside correction below $3,780 and $3,750.
- The price is trading below $3,800 and the 100-hourly Simple Moving Average.
- There is a key bearish trend line forming with resistance at $3,740 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could start a fresh increase if it stays above the $3,500 support zone.
Ethereum Price Holds Support
Ethereum price extended losses below the $3,880 zone like Bitcoin. ETH declined below the $3,780 and $3,750 support levels. It even spiked below $3,550.
A low was formed at $3,488 and the price is now consolidating losses. It recovered some points above the $3,550 and $3,600 levels. The price already tested the 50% Fib retracement level of the downward move from the $4,015 swing high to the $3,488 low.
However, the bears are active below $3,800 and preventing more upsides. Ethereum price is now trading below $3,800 and the 100-hourly Simple Moving Average. On the upside, the price seems to be facing hurdles near the $3,750 level. There is also a key bearish trend line forming with resistance at $3,740 on the hourly chart of ETH/USD.
The first major resistance is near the $3,815 level or the 61.8% Fib retracement level of the downward move from the $4,015 swing high to the $3,488 low.
The main resistance is now forming near $3,880. A clear move above the $3,880 resistance might send the price toward the $4,000 resistance. An upside break above the $4,000 resistance might call for more gains in the coming sessions. In the stated case, Ether could rise toward the $4,150 resistance zone or even $4,220.
Another Decline In ETH?
If Ethereum fails to clear the $3,750 resistance, it could start another decline. Initial support on the downside is near the $3,600 level. The first major support sits near the $3,550 zone.
A clear move below the $3,550 support might push the price toward the $3,500 support. Any more losses might send the price toward the $3,420 support level in the near term. The next key support sits at $3,350.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is losing momentum in the bearish zone.
Hourly RSI – The RSI for ETH/USD is now below the 50 zone.
Major Support Level – $3,500
Major Resistance Level – $3,750