Ethereum was able to extend its rally above the $3,500 resistance zone against the US Dollar. ETH price is gaining pace and it might continue to rise towards the $3,800 level.
- Ethereum started a steady increase above the $3,500 and $3,550 resistance levels.
- The price is now trading above $3,500 and the 100 hourly simple moving average.
- There is a major bullish trend line forming with support near $3,490 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair is correcting gains, but dips could be limited below $3,450 in the near term.
Ethereum Price is Rising
Ethereum started a fresh increase after it was able to clear the $3,450 resistance zone. ETH broke the $3,500 resistance zone and the 100 hourly simple moving average to move further into a positive zone.
The upward move was such that the price even climbed above the $3,600 level. A high is formed near $3,620 and the price is now correcting gains, similar to bitcoin. It traded below the $3,600 level. There was a break below the 23.6% Fib retracement level of the recent wave from the $3,361 swing low to $3,620 high.
There is also a major bullish trend line forming with support near $3,490 on the hourly chart of ETH/USD. An immediate resistance on the upside is near the $3,580 level.
The first major resistance is near the $3,600. A clear break and close above the $3,600 level could push the price further higher. The next major resistance sits near $3,720. Any more gains could set the pace for a move towards the $3,800 level.
Dips Limited in ETH?
If ethereum fails to continue higher above the $3,580 and $3,600 resistance levels, it could start a downside correction. An initial support on the downside is near the $3,520 level.
The next major support seems to be forming near the $3,500 level and the trend line. The trend line is close to the 50% Fib retracement level of the recent wave from the $3,361 swing low to $3,620 high. Any more downsides might call for a test of the $3,450 support zone.
- Hourly MACD – The MACD for ETH/USD is slowly losing pace in the bullish zone.
- Hourly RSI – The RSI for ETH/USD is still above the 50 level.
- Major Support Level – $3,500
- Major Resistance Level – $3,600
Source: News BTC