Ethereum corrected higher after trading close to $3,140. According to technical analysis by NewsBTC’s Aayush Jindal, it must surpass $3,325 and the 100 hourly SMA for a decent start to rise.
Ethereum Targets Recovery
Ethereum fell to $3,143 in yesterday’s drop. It then formed a bottom above $3,150 and started a decent upward move. There was a break above the $3,200 resistance level. ETH managed to clear the 23.6% Fib retracement level of the low from the $3,550 low to $3,143 low. However, it is still trading below $3,300 and the 100 hourly simple moving average.
An initial resistance is seen near the $3,300 level. There is also a short term ascending channel forming with resistance near $3,300 on the hourly chart of ETH/USD. The next major resistance is near the $3,325 level and the 100 hourly simple moving average. A clear move above the $3,325 level could even push the price above the 50% Fib retracement level of the key drop from the $3,550 low to $3,143 low.
ETH could start a decent rise if it climbs above the $3,325 and $3,345 resistance levels. In the stated case, the price could climb above the $3,400 zone. The next key hurdle is near the $3,450 level and a connecting downtrend line.
Will Ethereum Drop?
Jindal says that if Ethereum fails to start a fresh increase above the $3,325 level, it could start another significant decline. An initial support on the downside is near the $3,230 area. The next major support is near the $3,200 level. If there is a downside break below the $3,200 support, the price could resume its decline. In the stated case, the price could decline below $3,143.
What Do Technical Indicators Say?
- Hourly MACD – The MACD for ETH/USD is slowly gaining momentum in the bullish zone.
- Hourly RSI – The RSI for ETH/USD is now above the 50 level.
- Major Support – $3,200
- Major Resistance – $3,325
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