Ethereum started a strong rally and it cleared $3,500 against the US Dollar. ETH price even climbed above $3,800 and it could rise further towards $4,000 in the next few days.
- Ethereum started a major increase above the $3,500 and $3,650 resistance levels.
- The price is now trading above $3,700 and the 100 hourly simple moving average.
- There is a key bullish trend line forming with support near $3,600 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could dip in the short-term, but it might find bids near $3,680 or $3,620.
Ethereum Price Extends Rally
Ethereum remains in a strong uptrend above the $3,500 pivot level. ETH gained pace and it was able to surpass the $3,650 resistance level. The price even surpassed $3,750 and settled well above the 100 hourly simple moving average.
Finally, there was a break above $3,800 and the price tested the $3,840 zone. A high is formed near $3,843 and the price is now correcting lower. It traded below the $3,800 level.
There was a break below the 23.6% Fib retracement level of the upward move from the $3,520 swing low to $3,843 high. Ether price is now consolidating near the $3,750 level. It is also trading well above $3,700 and the 100 hourly simple moving average.
Source: ETHUSD on TradingView.com
There is also a key bullish trend line forming with support near $3,600 on the hourly chart of ETH/USD. An immediate resistance on the upside is near the $3,800 level. The first major resistance is near the $3,850 level. If there is a clear break above the $3,850 level, the price could accelerate higher towards the $3,900 level. The next main resistance is near the $4,000 level.
Dips Limited in ETH?
If ethereum fails to continue higher above the $3,800 and $3,850 resistance levels, it could start a downside correction. An immediate support on the downside is near the $3,700 level.
The next major support is now forming near the $3,680 zone. It is close to the 50% Fib retracement level of the upward move from the $3,520 swing low to $3,843 high. A downside break below the $3,680 zone could lead the price towards the trend line support at $3,600.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is slowly losing pace in the bullish zone.
Hourly RSI – The RSI for ETH/USD is correcting lower from well above the 70 level.
Major Support Level – $3,680
Major Resistance Level – $3,850
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