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Ethereum Price Poised for Recovery: Will It Reignite The Uptrend?
Ethereum price is moving higher from the $3,550 zone. ETH is showing bullish signs and might soon aim for a move above the $3,680 resistance zone.
- Ethereum started a downside correction and retested the $3,550 zone.
- The price is trading above $3,600 and the 100-hourly Simple Moving Average.
- There is a connecting bearish trend line forming with resistance at $3,650 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could restart its increase if it clears the $3,650 zone.
Ethereum Price Eyes Fresh Upward Move
Ethereum price failed to clear the $3,800 resistance zone and corrected some gains like Bitcoin. ETH declined below the $3,650 and $3,600 support levels. It even retested the $3,550 support level.
A low was formed at $3,557 and the price is now attempting a fresh increase. There was a move above the $3,600 and $3,620 levels. The price tested the 50% Fib retracement level of the downward move from the $3,762 swing high to the $3,557 low.
Ethereum price is now trading above $3,600 and the 100-hourly Simple Moving Average. On the upside, the price seems to be facing hurdles near the $3,650 level. There is also a connecting bearish trend line forming with resistance at $3,650 on the hourly chart of ETH/USD.
The first major resistance is near the $3,685 level or the 61.8% Fib retracement level of the downward move from the $3,762 swing high to the $3,557 low. The main resistance is now forming near $3,750.
A clear move above the $3,750 resistance might send the price toward the $3,800 resistance. An upside break above the $3,800 resistance might call for more gains in the coming sessions. In the stated case, Ether could rise toward the $3,880 resistance zone or even $3,920.
Another Slide In ETH?
If Ethereum fails to clear the $3,650 resistance, it could start another decline. Initial support on the downside is near the $3,600 level. The first major support sits near the $3,580 zone.
A clear move below the $3,580 support might push the price toward the $3,550 support. Any more losses might send the price toward the $3,440 support level in the near term. The next key support sits at $3,350.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is gaining momentum in the bullish zone.
Hourly RSI – The RSI for ETH/USD is now above the 50 zone.
Major Support Level – $3,550
Major Resistance Level – $3,685
