Ethereum started a steady increase above $3,250 and $3,300 against the US Dollar. ETH price is now struggling to gain strength above $3,400 and $3,450.
Ethereum started a downside correction after it faced sellers near the $3,500 zone.
The price is now trading above $3,200 and the 100 hourly simple moving average.
There was a break above a declining channel with resistance near $3,380 on the hourly chart of ETH/USD (data feed via Kraken).
The pair could start a fresh increase if it remains stable above the $3,275 support.
Ethereum Price Gains Pace
Ethereum gained strength for a move above the $3,200 level. ETH even climbed above the $3,300 level and the 100 hourly simple moving average. However, the price failed near the $3,500 zone.
A high was formed near $3,489 before there was a downside correction, similar to bitcoin. The price corrected lower below the $3,350 support level. However, the bulls were active near the $3,275 level and the 100 hourly simple moving average.
A low was formed near $3,275 and the price started a fresh increase. There was a break above the $3,350 resistance level. Ether climbed above the 50% Fib retracement level of the downward move from the $3,489 swing high to $3,275 low.
There was also a break above a declining channel with resistance near $3,380 on the hourly chart of ETH/USD. It is now consolidating near the $3,380 zone.
An immediate resistance on the upside is near the $3,420 level. The first major resistance is near the $3,440 level. It is near the 76.4% Fib retracement level of the downward move from the $3,489 swing high to $3,275 low. The next major resistance is near the $3,500 level, above which the price might accelerate towards $3,700.
Dips Limited in ETH?
If ethereum fails to continue higher above the $3,420 and $3,440 resistance levels, it could start a fresh downside correction. An initial support on the downside is near the $3,350 level.
The first key support is now forming near the $3,300 level and the 100 hourly simple moving average. If ether fails to stay above $3,300 and $3,275, it could continue to move down. The next major support could be near the $3,200 level.
Technical Indicators:
Hourly MACD – The MACD for ETH/USD is now losing pace in the bullish zone.
Hourly RSI – The RSI for ETH/USD is just above the 50 level.
Major Support Level – $3,275
Major Resistance Level – $3,440
