Ethereum Consolidates Below Key Resistance Level
Currently, Ethereum is consolidating below the $3,550 resistance zone. However, the price has managed to stay above $3,450 and the 100-hourly Simple Moving Average. A key bullish trend line is forming with support at $3,440 on the hourly chart of ETH/USD (data feed via Kraken). The pair may see further upward movement if there is a clear break above the $3,500 resistance zone.
Price Action Overview
Despite an initial attempt to break the $3,550 resistance, Ethereum faced rejection similar to Bitcoin. The price dipped and tested the $3,425 support level before rebounding. A low was formed near $3,427, and the price is now on the rise. Currently, Ethereum is trading above $3,450 and the 100-hourly Simple Moving Average, indicating a positive sentiment in the market.
- The price surpassed the $3,450 level, showing potential for further gains.
- There was a break above the 23.6% Fib retracement level of the recent downward move.
- A key bullish trend line is forming with support at $3,440, emphasizing bullish momentum.
Potential Upside Movement
If Ethereum maintains its position above the 100-hourly Simple Moving Average, a fresh increase could be on the horizon. The price currently faces resistance near $3,500, followed by major hurdles at $3,550 and $3,565. A successful close above these levels could propel Ether towards higher resistances around $3,650 and $3,720. An upwards break above $3,720 might signal a move towards the $3,800 zone in the near future.
Risks of a Downtrend
However, if Ethereum fails to break above the $3,500 resistance, a pullback scenario may unfold. Initial support awaits at $3,460, with a more significant support level at $3,440 where the bullish trend line also sits. A breakdown below $3,440 could lead to further downside towards $3,420 and potentially $3,350. The critical support level to watch is at $3,320, which could act as a strong barrier in case of extended losses.
Technical Indicators and Key Levels
- Hourly MACD – The MACD for ETH/USD shows a decline in bullish momentum.
- Hourly RSI – The RSI for ETH/USD is currently above the 50 level, indicating positive price action.
Key levels to consider:
- Major Support Level – $3,440
- Major Resistance Level – $3,550
Hot Take: Stay Vigilant in Ethereum Trading
As you navigate the Ethereum market, it’s essential to monitor key resistance levels around $3,500, $3,550, and $3,565 for potential bullish breakouts. Should the price sustain above $3,450 and the 100-hourly Simple Moving Average, a bullish trend could push Ethereum towards higher resistances. Conversely, failure to break above $3,500 may lead to a corrective phase with support levels at $3,460 and $3,440 critical to watch for bearish signals.
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