ethereum price rose to a new multi-month high above $3,400. eth is consolidating like bitcoin and appears to be preparing for another bullish wave.
- ethereum extended its rise above the $3,400 resistance zone.
- The price is trading above $3,350 and the 100 hourly simple moving average.
- A key bullish trend line is forming with support at $3,250 on the hourly chart of eth/USD (data via Kraken).
- The pair could correct lower but declines could be limited below the $3,250 support zone.
ethereum price extends its rally
ethereum price remained in a bullish zone after stabilizing above the $3,000 pivot level. bitcoin saw strong moves above the $60,000 resistance. It even rose towards the $64,000 level. eth also started a decent rise and broke the $3,320 resistance.
It rose more than 10% and even tested the $3,500 level. A new multi-month high was formed near $3,496 before a sharp decline occurred. A low was formed at $3,111 and the price is now attempting a new rise. It is still above the 23.6% Fib retracement level of the ascending wave from the low of $3,111 to the high of $3,465.
ethereum is now trading above $3,350 and the 100 hourly simple moving average. There is also a key bullish trend line forming with support at $3,250 on the hourly chart of eth/USD. The trend line is near the 61.8% Fibonacci retracement level of the ascending wave from the low of $3,111 to the high of $3,465.
The immediate resistance on the upside is near the $3,450 level. The first major resistance is near the $3,500 level. The next major resistance is near $3,550, above which the price could gain bullish momentum.
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Fountain: ETHUSD on TradingView.com
If there is a move above the $3,550 resistance, Ether could even rise towards the $3,680 resistance. Any additional winnings could require proof of $3,800.
Downward correction in eth?
If ethereum fails to overcome the $3,450 resistance, it could start a downward correction. Initial support on the downside is near the $3,380 level.
The first major support is near the $3,285 area. The next key support could be the $3,250 area and the trend line. A clear move below the $3,250 support could send the price towards $3,120. Any further losses could send the price towards the $3,050 level.
Technical Indicators
MACD hourly – The MACD for eth/USD is gaining momentum in the bullish zone.
Hourly RSI – The RSI for eth/USD is now above the 50 level.
Major Support Level: $3285
Main Resistance Level: $3,450
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