TA: Ethereum Reverse Losses, What Could Spark Rally To $3,500
Ethereum remained well bid above the $2,950 support against the US Dollar. ETH price started a fresh increase and it could even surpass the $3,300 resistance.
- Ethereum started a fresh increase above the $3,120 and $3,200 resistance levels.
- The price is now trading above $3,150 and the 100 hourly simple moving average.
- There was a break above a crucial bearish trend line with resistance near $3,150 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could accelerate higher if there is a clear break above $3,260.
Ethereum Price Turns Green
Ethereum remained well bid above the $2,950 support zone, similar to bitcoin near $44,000. ETH price formed a base above $2,950 and it started a fresh increase.
There was a clear break above the $3,000 and $3,050 resistance levels. The price rallied above the 50% Fib retracement level of the main decline from the $3,335 swing high to $2,950 low. Ether even settled above the $3,150 level and the 100 hourly simple moving average.
Besides, there was a break above a crucial bearish trend line with resistance near $3,150 on the hourly chart of ETH/USD. The pair is now trading above the $3,200 resistance.
Source: ETHUSD on TradingView.com
On the upside, an initial resistance is near the $3,245 level. It is near the 76.4% Fib retracement level of the main decline from the $3,335 swing high to $2,950 low. The first key resistance is now forming near the $3,260 level. A break above the $3,260 zone could lift the price towards the $3,330 resistance. Any more gains may possibly call for a move towards the $3,500 level.
Dips Limited in ETH?
If ethereum fails to continue higher above the $3,245 and $3,260 resistance levels, it could start a fresh downside correction. An immediate support on the downside is near the $3,165 level.
The key support is now forming near the $3,150 zone and the 100 hourly simple moving average. A downside break below the $3,150 support zone could initiate a larger decline. The next major support could be $3,120, below which the bears might aim a retest of $3,000 in the near term.
Hourly MACD – The MACD for ETH/USD is now gaining pace in the bullish zone.
Hourly RSI – The RSI for ETH/USD is now well above the 60 level.
Major Support Level – $3,150
Major Resistance Level – $3,330
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