Ethereum gained momentum above the $3,050 resistance. According to technical analysis by NewsBTC’s Aayush Jindal, it could continue to rise if there is a clear move above the $3,120 resistance.
Ethereum Continues Recovery
Ethereum formed a base above $3,000 and started a decent recovery wave. ETH managed to clear the $3,050 resistance zone and the 100 hourly simple moving average. Also, there was a move above a major bearish trend line with resistance near $3,060 on the hourly chart of ETH/USD. The pair surpassed the $3,080 resistance zone and traded above $3,100. A top was formed near $3,131 and the price is now consolidating gains.
tested the 23.6% Fib retracement level of the recent rise from the $2,880 low to $3,131 high. ETH is now trading above $3,080 and the 100 hourly simple moving average. On the same chart, there is an initial resistance and a connecting downtrend line forming near the $3,090 level.
$3,130 Crucial
The next major resistance is near the $3,120 and $3,130 levels. A close above the $3,130 level could start a decent upside move in the near term. The next major resistance could be near $3,200 or $3,220.
Are Drops Limited?
Jindal says if Ethereum fails to gain momentum above the $3,090 level, it could initiate a downside correction. An initial support on the downside is near the $3,080 area. The first major support is near the $3,040 level and the 100 hourly simple moving average. The next major support seems to be near the $3,000 level. This is close to the 50% Fib retracement level of the rise from the $2,880 low to $3,131 high. If there is a downside break below the $3,000 support, the price could start another decline.
What Do Technical Indicators Say?
- Hourly MACD – The MACD for ETH/USD is now losing momentum in the bullish zone.
- Hourly RSI – The RSI for ETH/USD is now above the 50 level.
- Major Support – $3,040
- Major Resistance – $3,130
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