Ethereum price climbed to a new multi-month high above $3,500. ETH is correcting gains like Bitcoin and might find strong bids near the $3,250 zone.
- Ethereum extended its increase above the $3,500 resistance zone.
- The price is trading above $3,300 and the 100-hourly Simple Moving Average.
- There is a major bullish trend line forming with support at $3,260 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could correct lower, but dips might be limited below the $3,260 support zone.
Ethereum Price Eyes Fresh Increase
Ethereum price gained pace after it broke the $3,200 resistance zone, like Bitcoin. ETH cleared many hurdles near the $3,320 and $3,400 levels. Finally, it spiked above the $3,500 level.
A new multi-month high was formed near $3,515 before there was a downside correction. The price declined below the $3,420 and $3,400 levels. It even tested the 50% Fib retracement level of the upward wave from the $3,110 swing low to the $3,515 high.
Ethereum is now trading above $3,300 and the 100-hourly Simple Moving Average. There is also a major bullish trend line forming with support at $3,260 on the hourly chart of ETH/USD. The trend line is close to the 61.8% Fib retracement level of the upward wave from the $3,110 swing low to the $3,515 high.
Immediate resistance on the upside is near the $3,420 level. The first major resistance is near the $3,450 level. The next major resistance is near $3,500, above which the price might gain bullish momentum.
Source: ETHUSD on TradingView.com
If there is a move above the $3,500 resistance, Ether could even rally toward the $3,620 resistance. Any more gains might call for a test of $3,800.
Are Dips Supported In ETH?
If Ethereum fails to clear the $3,420 resistance, it could start a downside correction. Initial support on the downside is near the $3,310 level.
The first major support is near the $3,260 zone or the trend line. The next key support could be the $3,250 zone. A clear move below the $3,250 support might send the price toward $3,120. Any more losses might send the price toward the $3,050 level.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is losing momentum in the bullish zone.
Hourly RSI – The RSI for ETH/USD is now below the 50 level.
Major Support Level – $3,260
Major Resistance Level – $3,420
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Author: Aayush Jindal
