Ethereum is consolidating above the $3,320 support. According to technical analysis by NewsBTC’s Aayush Jindal, it must surpass $3,450 for it to start a fresh rise in the near term.
Ethereum Eyes More Upside Down
Ethereum started a minor downside correction from the $3,480 region but the bulls were active near the $3,335 level. A bottom was formed near $3,335 and the price is currently rising. There was a move above the 50% Fib retracement level of the move from the $3,482 high to $3,334 low. There is also a key contracting triangle forming with resistance near $3,415 on the hourly chart of ETH/USD.
ETH is facing resistance near the $3,420 level. The next major resistance is near the $3,450 level. ETH must surpass the $3,450 resistance to start a fresh increase. In the stated case, ETH may even exceed $3,500. The bulls’ next big stop on the upside could perhaps be $3,650.
Are Drops Limited?
Jindal says if Ethereum fails to start a fresh increase above the $3,420 level, it could initiate another downside correction. An initial support on the downside is near the $3,360 zone. The next major support is near the $3,350 level. The main support is near the $3,320 zone and a connecting uptrend line. A downside break below the $3,320 support zone and the 100 hourly simple moving average could put a lot of pressure on the bulls in the near term. In the stated case, ETH could drop to $3,250.
What Do Technical Indicators Say?
- Hourly MACD – The MACD for ETH/USD is slowly losing momentum in the bullish zone.
- Hourly RSI – The RSI for ETH/USD is now above the 50 level.
- Major Support – $3,320
- Major Resistance – $3,450
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