Ethereum price is trying a modern rally above the $3,420 resistance zone. ETH is currently struggling to break the resistance levels at $3,480 and $3,520.
- Ethereum price slowly rose above the $3,420 level.
- The price is holding above $3,400 and the 100-hour basic moving average.
- On the hourly chart of ETH/USD (data via Kraken), there was a break of a connecting descending trend line with resistance near USD 3,390.
- To continue the uptrend, the pair needs to break through the resistance levels of $3,480 and $3,520.
Ethereum price recovers slightly
Ethereum price started a decent recovery wave above the $3350 level. ETH even crossed the $3400 level and outperformed Bitcoin. On the ETH/USD hourly chart, there was a breakout above the connecting bearish trend line with resistance near $3390.
The pair even broke through the $3450 resistance zone. A high formed at $3482 and the price is now consolidating profits. There was a move below the $3450 level. The price fell below the 23.6% Fibonacci retracement level of the upside move from the $3328 swing low to the $3482 high.
Bulls are now trying to secure more declines below the $3,420 level. Ethereum is trading above $3,400 and the 100-hour basic moving average.
On the other hand, the price is encountering resistance near the $3,480 level. The first major resistance is near the $3,500 level. The next major obstacle is near the $3,520 level. A close above the $3,520 level could take Ether towards the resistance at $3,550.
The next key resistance is around $3,620. An upward break above the resistance at $3,620 could result in a price rally. Any further gains could push Ether towards the $3,740 resistance zone.
Another ETH drop?
If Ethereum fails to break through the resistance at $3,480, another decline could begin. Initial downside support is near $3,420. The first major support is near the $3,400 zone and the 50% Fib retracement level, implying an upside move from the low of $3,328 to the high of $3,482.
A clear move below the $3,400 support could push the price towards $3,320. Any further losses could send the price towards $3,240 in the near future.
Technical indicators
Hourly MACD – MACD for ETH/USD is gaining momentum in the bullish zone.
Hourly RSI – The RSI for the ETH/USD pair has already exceeded the 50 level.
Main support level – USD 3,400
Main resistance level – $3480