TA: Ethereum Rallies Above $3,200 But This Resistance Is The Key
Ethereum started an upside correction above the $3,180 zone against the US Dollar. ETH price must clear the $3,250 to continue higher in the near term.
- Ethereum started a decent increase above the $3,200 resistance zone.
- The price is trading above $3,200 and the 100 hourly simple moving average.
- There is a key bullish trend line forming with support near $3,190 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could continue to rise if there is a clear break above the $3,250 resistance zone.
Ethereum Price Aims Upside Break
Ethereum started a decent increase above the $3,150 resistance zone. ETH even broke the $3,200 resistance zone and the 100 hourly simple moving average to move into a positive zone.
The upward move gained pace, but the bears appeared near the $3,250 level. A high was formed near $3,264 and the price is now consolidating gains. It is trading well above the 23.6% Fib retracement level of the recent increase from the $2,931 swing low to $3,264 high.
Besides, there is a key bullish trend line forming with support near $3,190 on the hourly chart of ETH/USD. Bitcoin price is trading above $3,200 and the 100 hourly simple moving average.
Source: ETHUSD on TradingView.com
On the upside, an immediate resistance is near the $3,250 level. A clear move above the $3,250 level might start a major increase in the near term. The next major resistance is near the $3,330 level, above which ether price could test $3,400. Any more gains could send the price towards the $3,550 level in the near term.
Fresh Decline in ETH?
If ethereum fails to start a fresh increase above the $3,250 level, it could start another decline. An initial support on the downside is near the $3,200 level.
The first key support is now forming near the $3,190 level and the trend line. A downside break below the $3,190 level might spark a fresh decline. In the stated case, the price could test the $3,100 support zone. It is near the 50% Fib retracement level of the recent increase from the $2,931 swing low to $3,264 high.
Hourly MACD – The MACD for ETH/USD is slowly losing pace in the bullish zone.
Hourly RSI – The RSI for ETH/USD is above the 50 level.
Major Support Level – $3,190
Major Resistance Level – $3,250
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