Ethereum corrected lower below $3,500 against the US Dollar. ETH price remained supported and it is now eyeing a key upside break above the $3,650 resistance.
- Ethereum started a fresh increase above the $3,500 resistance level.
- The price is now trading above $3,550 and the 100 hourly simple moving average.
- There was a break above a key bearish trend line with resistance near $3,560 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could gain bullish momentum once there is a clear break above $3,640 and $3,650.
Ethereum Price Eyes Key Upside Break
Ethereum started a downside correction from the $3,634 swing high. ETH traded below the $3,550 support level and the 100 hourly simple moving average.
However, the price remained well bid above the $3,350 support. A low was formed near $3,375 and the price started a fresh increase. There was a clear break above the $3,500 and $3,550 resistance levels. Ether surpassed the 50% Fib retracement level of the downward move from the $3,634 swing high to $3,375 low.
There was also a break above a key bearish trend line with resistance near $3,560 on the hourly chart of ETH/USD. The pair is now trading above $3,550 and the 100 hourly simple moving average.
Source: ETHUSD on TradingView.com
It is also well above the 76.4% Fib retracement level of the downward move from the $3,634 swing high to $3,375 low. An immediate resistance on the upside is near the $3,600 level. The first major resistance is near the $3,620 level.
The next major resistance is near the $3,650 level, above which the price might start a fresh surge. In the stated case, the price could climb towards the $3,720 level. The next key resistance might be $3,800.
Dips Limited in ETH?
If ethereum fails to continue higher above the $3,620 and $3,650 resistance levels, it could start a fresh downside correction. An initial support on the downside is near the $3,550 level.
The first key support is now forming near the $3,520 level and the 100 hourly simple moving average. Any more losses could lead ether price towards the $3,400 support zone.
Hourly MACD – The MACD for ETH/USD is gaining pace in the bullish zone.
Hourly RSI – The RSI for ETH/USD is now above the 50 level.
Major Support Level – $3,500
Major Resistance Level – $3,650
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