TA: Ethereum Reclaims $3K, Why ETH Could Rally To $3,400

NewsBTC

Ethereum started a decent recovery and climbed above $3,000 against the US Dollar. ETH price could accelerate higher if it clears the $3,200 resistance zone.

  • Ethereum started a decent upward move above the $3,000 and $3,050 levels.
  • The price is now trading above $3,000 and near the 100 hourly simple moving average.
  • There was a break above a major bearish trend line with resistance near $2,950 on the hourly chart of ETH/USD (data feed via Kraken).
  • The pair could continue to rise if it clears $3,135 and $3,200 in the near term.

Ethereum Price Is Rising

Ethereum formed a support base above the $2,650 and started a steady recovery wave. ETH broke the $2,800 resistance zone and gained pace, similar to bitcoin.

There was also a break above a major bearish trend line with resistance near $2,950 on the hourly chart of ETH/USD. The pair surpassed the 76.4% Fib retracement level of the key decline from the $3,105 swing high to $2,651 swing low.

The price is now trading above $3,000 and near the 100 hourly simple moving average. An immediate resistance on the upside is near the $3,135 level. The first major resistance is near the $3,200 level. It is close to the 1.236 Fib extension level of the key decline from the $3,105 swing high to $2,651 swing low.

Source: ETHUSD on TradingView.com

A close above the $3,200 resistance could push the price further higher. The next major resistance might be near the $3,400 level. It represents the 1.618 Fib extension level of the key decline from the $3,105 swing high to $2,651 swing low. An intermediate resistance might be near the $3,320 level.

More Losses in ETH?

If ethereum fails to continue higher above the $3,135 and $3,200 resistance levels, it could start a downside correction. An initial support on the downside is near the $3,050 level.

The next major support seems to be forming near the $3,000 level. A downside break below the $3,000 support zone could lead the price towards the $2,800 zone. The next major support is near the $2,650 level, below which ether price might decline towards the $2,500 region in the near term.

Technical Indicators

Hourly MACD – The MACD for ETH/USD is slowly gaining pace in the bullish zone.

Hourly RSI – The RSI for ETH/USD is now well above the 50 level.

Major Support Level – $3,000

Major Resistance Level – $3,200

via NewsBTC

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