TA: Ethereum Bulls In Control, Why ETH Could Rally Above $3,500

 TA: Ethereum Bulls In Control, Why ETH Could Rally Above $3,500

Ethereum gained strength above $3,200 and $3,350 against the US Dollar. ETH price could start a fresh rally if it clears $3,450 and $3,500.

  • Ethereum started a steady increase after it settled above the $3,200 level.
  • The price is now trading above $3,300 and the 100 hourly simple moving average.
  • There was a break below a key bullish trend line with support near $3,400 on the hourly chart of ETH/USD (data feed via Kraken).
  • The pair could might remain supported near the $3,300 and $3,250 levels.

Ethereum Price Stuck Below Resistance

Ethereum formed a base above the $3,000 level and started a fresh increase. ETH broke the $3,150 and $3,200 resistance levels to move into a positive zone.

There was also a close above the $3,300 level and the 100 hourly simple moving average. The price traded as high as $3,489 and recently corrected lower, similar to bitcoin. Ether declined below the $3,400 support level. There was a break below the 23.6% Fib retracement level of the upward move from the $2,970 swing low to $3,489 high.

There was a break below a key bullish trend line with support near $3,400 on the hourly chart of ETH/USD. It is now trading above the $3,320 support level.

Source: ETHUSD on TradingView.com

An immediate resistance on the upside is near the $3,400 level. The first major resistance is near the $3,420 level. A break above the $3,420 level could start a steady increase. The next main resistance is near the $3,500 zone, above which the price might accelerate higher.

Dips Limited in ETH?

If ethereum fails to continue higher above the $3,420 and $3,500 resistance levels, it could start a fresh downside correction. An initial support on the downside is near the $3,300 level.

The first key support is now forming near the $3,250 level and the 100 hourly simple moving average. If ether fails to stay above $3.250, it could test the $3,230. It is near the 50% Fib retracement level of the upward move from the $2,970 swing low to $3,489 high.

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 below the 50 level.

Major Support Level – $3,250

Major Resistance Level – $3,420

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