TA: Ethereum Gearing For Another Lift-Off to $3,500: Recovery Isn’t Over Yet

The Ethereum price started to fall from $3,400 against US dollars. The ETH price holds the $3250 support, and expects a new increase over the $3320 resistance.

  • Ethereum underwent a downtrend starting from the $3,000.00 resistance zone.
  • The daily simple moving average is 100 hours and the price trades above $3,250
  • The hourly chart for ETH/USD showed a break below the major bullish trendline with support at $3,300 (data feed via Kraken).
  • If the pair remains above $3,250, it could begin a new increase.

Ethereum’s Price Drops

Ethereum saw a sharp rise above the $3320 resistance zone. ETH broke even the $3,400 resistance area and the 100-hourly simple moving average but it was not heading in the right direction.

The price reached a high of $3,412 near the support. Now it is correcting its gains. The price of Ether fell below the $3320 support. A break was seen below the 23.6% Fib level of the pivotal increase from the $2.931 swing low and the $3,412 peak.

On the hourly chart of Ethereum/USD, it was also below a bullish trend line, with support close to $3,300. The 100 hourly moving average is at $3,250.

Ethereum Price

Source: TradingView.com, ETHUSD

The immediate resistance to the downside is located near the $3300 level. Close to the $3320 level is the initial major resistance. An increase of the price above the level $3,320 might be possible in the immediate future. Near the $3,400 mark is the next resistance. Above that, price may test $3,480. Price gains of more than 1% could push it towards the $3550 mark in the immediate future.

Dips Limited in Ethereum?

If the $3,320 level is not reached, ethereum could fall further. The $3,250 level is the first support for the downside. At the moment, the initial support for downside is nearing $31,175

This price is at the 50% Fib Retracement level, which represents the main increase from the $2.931 swing low and $3.412 high. Price could move towards $3,115 if there is a downside breakout below $3,175 A further loss could push the price to $3,000.

Technical Indicators

Minutely MACDIn the bearish zone, the MACD for USD/ETH is gradually losing speed.

Hourly RSIThe RSI of ETH/USD is at or above 50.

Major Support Level – $3,250

Major Resistance Level – $3,320

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