Ethereum remained supported above the $3,650 zone against the US Dollar. ETH must clear the $3,850 and $3,900 resistance levels to continue higher in the near term.
Ethereum started a fresh increase above the $3,700 and $3,750 resistance levels.
The price is now trading above $3,800 and the 100 hourly simple moving average.
There is a major contracting triangle forming with resistance near $3,840 on the hourly chart of ETH/USD (data feed via Kraken).
The pair could start a fresh rally if it clears the key $3,920 resistance zone.
Ethereum Price Remains Supported
Ethereum started a downside correction after it failed to stay above the $3,900 zone. ETH declined below the $3,800 support zone and the 100 hourly simple moving average.
The price even spiked below the $3,750 support zone. A low was formed near $3,678 and the price is now rising. It broke the $3,780 resistance zone. There was a break above the 50% Fib retracement level of the recent drop from the $3,893 swing high to $3,678 low.
Ether is now trading above $3,800 and the 100 hourly simple moving average. The price is now testing the 61.8% Fib retracement level of the recent drop from the $3,893 swing high to $3,678 low. There is also a major contracting triangle forming with resistance near $3,840 on the hourly chart of ETH/USD.
An immediate resistance on the upside is near the $3,840 level. The next major resistance is near the $3,920 level, above which the price might start a fresh rally. In the stated case, the price could attempt a clear break above the $4,000 resistance zone. The next major support sits near the $4,120 level.
Dips Limited in ETH?
If ethereum fails to continue higher above the $3,840 and $3,920 resistance levels, it could start a fresh downside correction. An initial support on the downside is near the $3,780 level and the 100 hourly SMA.
The first key support is now forming near the $3,720 level and the triangle lower trend line. If there is a downside break below the $3,720 support, the price could decline further. The next key support is near $3,650.
Technical Indicators:
Hourly MACD – The MACD for ETH/USD is gaining pace in the bullish zone.
Hourly RSI – The RSI for ETH/USD is now above the 50 level.
Major Support Level – $3,720
Major Resistance Level – $3,920
