Ethereum has formed a base in the vicinity of the $3660 area against the US dollar. Although the ETH price is moving higher, a move above $3920 is necessary to ensure that upside continues.
- Ethereum is building a base at the $3.660 and $3.700 support levels.
- The current price of the stock is trading at $4,000, with the simple moving average of 100 hours.
- The hourly chart for ETH/USD showed a break above the connecting bearish trendline with resistance at $3,800 (data feed via Kraken).
- A new rise could be possible if the pair crosses the $3,920 resistance area and the 100 hourly SMA.
Ethereum Price Forms a Base
Ethereum fell below the $3800 mark. ETH established a base at the $3,660-$3,700 levels and has recently begun an upward correction.
A move higher than the $3,800 mark was observed. Price moved above the 23.6% Fib level of the drop from $4,175 swing high, to $3,665 lower. A break was also seen above the connecting bearish trendline with resistance at $3,800, on an hourly chart for ETH/USD.
Resistance is currently being experienced by Ether prices near the $3880 area. Near the $3,920 mark is the next significant resistance. This is near the Fib retracement of 50% the drop from $4,175 high to $3,665 lowest. It could show a steady uptrend if it moves above the $3920 level.
Source: TradingView.com, ETHUSD
Next stop for bulls may be at $4,000. An increase in price above $4,000 could spark an immediate rally. The above scenario could lead to a rise up to the $4,250 mark.
Is there a new decline in ETH?
It could experience a further decline if ethereum does not start an increase above $3,920. The $3,820 level is a support area for the downside.
The $3,720 support level is the key support. The price may lose more if it breaks below the $3720 level. Next major support is at $3,660. Below this level, bears could aim to test $3,500. Price could drop to $3,320 if it suffers more losses.
Technical Indicators
Hourly MACD – Slowly the MACD of ETH/USD gains pace in bullish zones.
Hourly RSI – The RSI is higher than 50 for USD/ETH.
Major Support Level – $3,720
Major Resistance Level – $3,920
