Key Support Zone Still Holding for Ethereum Price
Despite recent challenges, Ethereum is still maintaining its position above the crucial $3,365 support level. As the price trends below $3,550 and the 100-hourly Simple Moving Average, there are key resistance levels to watch out for. Traders are closely monitoring the formation of a bearish trend line near $3,500 on the hourly ETH/USD chart via Kraken. Here are some key highlights for you to consider:
- Failure to breach $3,580 and $3,650 resistance levels.
- Decline below $3,500 support, finding support near $3,350.
- Potential formation of a double-bottom pattern with a likely rise towards $3,700 resistance.
Ethereum Price Retests Key Support
Despite attempts to surpass the $3,580 and $3,650 resistance levels, Ethereum faced a setback, mirroring Bitcoin’s movement. The price dipped below the $3,500 mark, experiencing a sharp decline under $3,420. However, buyers stepped in near $3,350, forming a bottom. Here is a breakdown of recent price action:
- Low at $3,350 before a renewed uptrend.
- Break above $3,380 and $3,400 resistance levels.
- Clearance of 23.6% Fib retracement level of the prior downtrend.
- Trading below $3,550 and the 100-hourly SMA, possibly forming a double-bottom pattern towards $3,700.
Resistance Levels to Watch
As Ethereum looks to regain momentum, several resistance levels will play a crucial role in determining its next move:
- Initial resistance near $3,460.
- Major hurdle at $3,500 or the 50% Fib retracement level.
- Bearish trend line resistance forming at $3,500 on the hourly chart.
- Potential breakout above $3,500 leading to a test of $3,580 and $3,650 levels.
Downside Break In ETH?
If Ethereum struggles to overcome the $3,500 resistance barrier, a downside movement could be in play. Here are key support levels to monitor:
- Initial support at $3,380.
- Main support at $3,350.
- Possible drop towards $3,250 upon breaching $3,350 support.
- Further decline might target the $3,120 level in the short term.
Technical Indicators Overview
Technical indicators can provide insights into the market sentiment surrounding Ethereum:
- Hourly MACD indicates waning bearish momentum for ETH/USD.
- Hourly RSI now below the 50 mark for ETH/USD.
- Key support level stands at $3,350 while major resistance is at $3,500.
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