Ethereum In A Holding Pattern: Will It Break Out To Higher Levels?
Ethereum price failed to continue higher above the $3,500 resistance zone. ETH corrected gains and is now trading in a range above the $3,400 level.
- Ethereum is consolidating below the $3,500 resistance zone.
- The price is trading below $3,480 and the 100-hourly Simple Moving Average.
- There is a key declining channel forming with resistance at $3,470 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could start a fresh increase if there is a clear move above the $3,500 resistance zone.
Ethereum Price Stuck In A Range Below $3,550
Ethereum price failed to extend gains above the $3,550 resistance zone. ETH corrected gains and traded below the $3,500 level like Bitcoin. The bears were able to push the price below the $3,450 level.
A low is formed near $3,390 and the price is rising. There was a move above the $3,420 level. The price climbed above the 50% Fib retracement level of the downward move from the $3,540 swing high to the $3,390 low. However, the bears are active near the $3,500 level.
They failed to clear the 61.8% Fib retracement level of the downward move from the $3,540 swing high to the $3,390 low. There is also a key declining channel forming with resistance at $3,470 on the hourly chart of ETH/USD.
Ethereum is now trading below $3,500 and the 100-hourly Simple Moving Average. On the upside, the price is facing resistance near the $3,480 level. The first major resistance is near the $3,500 level. The next major hurdle is near the $3,520 level.
A close above the $3,520 level might send Ether toward the $3,550 resistance. The next key resistance is near $3,650. An upside break above the $3,650 resistance might send the price higher toward the $3,800 resistance zone.
Another Decline In ETH?
If Ethereum fails to clear the $3,500 resistance, it could start another decline. Initial support on the downside is near $3,420. The first major support sits near the $3,400 zone.
A clear move below the $3,400 support might push the price toward $3,340. Any more losses might send the price toward the $3,320 support level in the near term. The next key support sits at $3,250.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is losing momentum in the bullish zone.
Hourly RSI – The RSI for ETH/USD is now above the 50 zone.
Major Support Level – $3,400
Major Resistance Level – $3,500
