Ethereum gained momentum above the $3,080 resistance. According to technical analysis by NewsBTC’s Aayush Jindal, it could continue to rise if there is a clear move above the $3,150 resistance.
Ethereum Continues to Find Support
Ethereum extended its rise above the $3,080 resistance. ETH even broke the $3,130 resistance area and settled above the 100 hourly simple moving average and even hit $3,172. Thereafter, there was a downside correction below the $3,130 level. ETH corrected below the 23.6% Fib retracement level of the upward move from the $2,880 low to $3,172 high. The price tested the $3,050 support zone and the 100 hourly simple moving average. There is also a key bullish trend line forming with support near $3,080 on the hourly chart of ETH/USD.
Initial resistance is seen near the $3,130 level. The next major resistance is near the $3,170 and $3,180 levels. A close above the $3,180 level could start a strong upside move in the near term. In the stated case, ETH could rally to the $3,250 level. The next major resistance could be near $3,280 or $3,320.
Are Drops Limited?
Jindal says that if Ethereum fails to gain momentum above the $3,130 level, it could start a downside correction. An initial support on the downside is near the $3,080 zone and the trend line.
The first major support is near the $3,060 level and the 100 hourly simple moving average. The next major support is near the $3,025 level. This is close to the 50% Fib retracement level of the upward move from the $2,880 low to $3,172 high. If there is a downside break below the $3,025 support, it could start another decline.
What Do Technical Indicators Say?
- Hourly MACD – The MACD for ETH/USD is now gaining momentum in the bullish zone.
- Hourly RSI – The RSI for ETH/USD is now above the 50 level.
- Major Support – $3,025
- Major Resistance – $3,130
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