Ethereum remained stable above the $3,400 level. ETH is rising and it could break above the $3,550 resistance zone according to technical analysis by NewsBTC’s Aayush Jindal.
Ethereum Aiming A Breakout To The Upside?
Ethereum retained the $3,400 support even though it declined. The bulls were also active near the 50% Fib retracement level of the rise from the $3,215 low to $3,580 high. It seems like a double bottom formation was formed near $3,400 and the price started a fresh increase. There was a move above the $3,500 level and the 100 hourly simple moving average.
The price is currently facing resistance near the $3,525 level. There is also a connecting bearish trend line forming with resistance near $3,530 on the hourly chart of ETH/USD. The next major resistance is near the $3,580 level. If ETH breaks the $3,580 resistance zone, it could start a massive increase. In the indicated case, the price could rise above the $3,600 zone. The next stop for the bulls could be $3,750.
Will Ethereum Drop?
Jindal says that if Ethereum fails to start a fresh increase above the $3,580 level, it could start another downside correction. An initial support on the downside is near the $3,450 zone and the 100 hourly simple moving average.
The next major support is near the $3,400 level. If there is a downside break below the $3,400 support, it could test $3,350. This is close to the 61.8% Fib retracement level of the key rise from the $3,215 high to $3,580 high. Any more losses may perhaps lead to a move towards the $3,220 support area.
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 – $3,400
- Major Resistance – $3,580
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