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Ethereum price started a recovery wave from the $3,230 area. ETH rose above $3,350, but is now facing strong resistance at $3,420.
- Ethereum started an upward correction from the $3,240 support area.
- The price is trading below the $3,420 level and the 100 hourly simple moving average.
- There is a major bearish trend line forming with resistance near $3,410 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair must cross the $3,420 and $3,450 resistance levels to continue rising.
Ethereum price is looking to recover
Ethereum price extended its losses and was trading below the $3,350 area. ETH even tested the $3,240 support area before starting a rally Bitcoin. There was a good increase above the $3,300 and $3,320 levels.
The bulls pushed the price above $3,350. It even rose above the 61.8% Fibonacci retracement level of the downward move from the high of $3,518 to the low of $3,230. However, the price seems to be facing up Strong resistance Close to the $3420 area.
There is also a major bearish trend line forming with resistance near $3,410 on the hourly chart of the ETH/USD pair. Ethereum is still trading below $3,420 and the 100 hourly simple moving average.
On the upside, the price faces obstacles near the trend line and the $3,420 level. The first major resistance is near the $3,450 level. It is close to the 76.4% Fib retracement level of the downward move from the high of $3,518 to the low of $3,230.
A close above the $3,450 level could send Ethereum towards the $3,520 resistance level. The next major resistance is near $3,550. A bullish breakout above the $3,550 resistance could push the price higher. The next major resistance is at $3,620, above which the price could gain momentum and rise towards the $3,650 level. Any further gains could send Ether towards the $3,720 resistance area.
Another drop in ETH?
If Ethereum fails to break above the $3,420 resistance level, it could start another decline. Initial support on the downside is near $3,375. The first major support is near the $3,350 area.
A clear move below the $3,350 support could push the price towards $3,280. Any further losses could push the price towards the $3,240 level in the near term.
Technical indicators
MACD per hour – The MACD indicator for ETH/USD is losing momentum in the bullish zone.
Hourly RSI – The RSI for ETH/USD is now above the 50 area.
Major support level – $3,300
Major resistance level – $3,420
