Ethereum price is trying a novel rally above the $3,450 resistance zone. ETH needs to stabilize above $3,550 to continue its gains in the near future.

• The price of Ethereum slowly rose above the $3,450 level.
• The price is above $3,450 and the 100-hour straightforward moving average.
• On the ETH/USD hourly chart (data via Kraken), there was a breakout above a key bearish trend line with resistance near $3,415.
• The pair needs to break through the resistance levels at $3,520 and $3,550 to continue its uptrend.

Ethereum price meets resistance

Ethereum price started a decent recovery wave above the $3400 level. ETH even broke through the $3420 level to move into a short-term positive zone like Bitcoin.

On the hourly chart, ETH/USD has broken above a key bearish trend line with resistance near $3,415. The pair even broke through the resistance zone at $3,500. The highest level was formed at $3,516 and the price is currently consolidating its increases.

There was a drop below the $3,500 level, however, the price remained above the Fibonacci retracement level of the 23.6% up move from the $3,350 swing low to the $3,516 high.

Ethereum is trading above $3450 and the 100-hour straightforward moving average. The current price action is positive and calls for further gains. On the upside, the price is encountering resistance near the $3500 level. The first major resistance is near the $3520 level.

The next major hurdle is near the $3,550 level. A close above the $3,550 level could push Ether towards the $3,650 resistance. The next key resistance is near $3,720. An upward break of the $3,720 resistance could send the price higher. Any further gains could push Ether towards the $3,880 resistance zone.

Are the declines in ETH confined?

If Ethereum fails to break the $3,550 resistance, it may begin a downward correction. Initial support on the downside is near $3,480. The first major support is located near the $3,440 zone and the 50% Fibonacci retracement level of the up move from the $3,350 swing low to the $3,516 high.

A clear move below the $3420 support could push the price towards $3350. Any further losses could send the price towards the $3320 level in the near future.

Technical indicators

Hourly MACD – The MACD for the ETH/USD pair is gaining momentum in the growth zone.

Hourly RSI – The RSI for ETH/USD is currently above the 50 zone.

Main support level – USD 3,420

Main resistance level – $3,550