Ethereum remained stable above the $3,400 level against the US Dollar. ETH price is rising and looking for a bullish breakout above the $3,550 resistance area.
- Ethereum started a new increase after it tested the $3,400 support area.
- The price is now trading above $3,500 and the 100 hourly simple moving average.
- There is a solid 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 $3550.
Ethereum price eyes broken upside down
Ethereum extended its decline below the $3,440 level. However, ETH bulls have protected a breakout to the downside below the level $3400 support. The bulls were also active near the 50% Fib retracement level of the main increase from the $3,215 swing low to $3,580.
It appears that a double bottom pattern has been formed near $3,400 and the price has started a new increase. There was a move above the $3500 level and 100-hour simple moving average.
The price is now facing resistance near the $3,525 level. There is also a solid 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 the Ether price clears the $3,580 resistance area, it could start a significant increase.
Source: ETHUSD on TradingView.com
In the mentioned case, the price could rise above the $3,600 area. The next major stop for the bulls could come at $3,750 in the near term.
Dips Limited in ETH?
If Ethereum fails to start a new rally above $3,580, it may start another downside correction. There is initial support on the downside near the $3,450 area 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 level, the price may test $3,350. It is near the 61.8% Fib retracement level of the major increase from the $3,215 swing low to $3,580. Any further losses could set the pace for a move towards the $3,220 support area.
MACD per hour – The MACD for ETH/USD is slowly moving into the bullish zone.
Hourly RSI – The RSI for ETH/USD is now above the 50 level.
Key Support Level – $3,400
Key Resistance Level – $3,580