Ethereum holds the main support zone of $ 3,120 against the US dollar. ETH price is consolidating and it looks like it may soon break above the USD 3,500 resistance zone.
- Ethereum is holding the floor above the USD 3,120 and USD 3,200 support levels.
- The price is still well below the $ 3,600 level and 100 hour simple moving average.
- The ETH / USD hourly chart (data feed via Kraken) broke above a major bearish trendline with resistance near USD 3,380.
- The pair is likely to form a double bottom pattern near the $ 3,125 zone.
The Ethereum price is showing positive signs
Ethereum extended its decline below $ 3,500 but remained stable above the $ 3,120 zone. ETH made two attempts to hit the $ 3,120 and $ 3,100 support levels, but the bears failed.
It appears that the price is forming a double floor pattern near the USD 3,125 zone, similar to Bitcoin. The most recent low was near $ 3,127 before the price bounced back sharply. It broke the $ 3,300 resistance level. Ether climbed above the 23.6% fib retracement level of the recent decline from the high of $ 3,885 to the low of $ 3,127.
There was also a break above a major bearish trendline with resistance near USD 3,380 on the ETH / USD hourly chart. However, the pair is still well below the $ 3,600 level and 100 hour simple moving average.
Source: ETHUSD on TradingView.com
Immediate resistance is near the $ 3,450 level. The first major resistance is near the USD 3,500 level. It is close to the 50% Fib retracement level of the recent decline from the high of $ 3,885 to the low of $ 3,127. If the raised floor pattern mentioned is valid, the price will likely go above $ 3,500.
The next stop for the bulls could be $ 3,600, or the simple 100-hour moving average on which the bears could take a stand.
Further losses in ETH?
Unless Ethereum continues above the USD 3,450 and USD 3,500 resistance levels, it could see another drop. Initial support on the downside is near the USD 3,350 level and the broken trendline.
The first major support is near the USD 3,300 level. The main support is now forming near the USD 3,125 level. If there is a downside break below the $ 3,125 zone, the price could fall towards the $ 3,000 support.
Hourly MACD – – The MACD for ETH / USD is slowly moving into the bullish zone.
Hourly RSI – – The RSI for ETH / USD is now close to the 50 level.
Main tier of support – $ 3,300
Main Resistance Level – $ 3,500