Ethereum Consolidates Gains, Indicators Suggest More Upsides

Ethereum gained pace above the $3,050 resistance against the US Dollar. ETH price could continue higher if there is a clear move above the $3,120 resistance.

• Ethereum extended upside correction above the $3,080 and $3,100 levels.
• The price is now trading above $3,050 and the 100 hourly simple moving average.
• There was a move above a major bearish trend line with resistance near $3,060 on the hourly chart of ETH/USD (data feed via Kraken).
• The pair must clear $3,120 and $3,130 to continue higher in the near term.

Ethereum Price Extends Recovery

Ethereum formed a base above the $3,000 and started a decent recovery wave. ETH was able to clear the $3,050 resistance zone and the 100 hourly simple moving average.

There was also a move above a major bearish trend line with resistance near $3,060 on the hourly chart of ETH/USD. The pair surpassed the $3,080 resistance zone and traded above $3,100. A high is formed near $3,131 and the price is now consolidating gains.

It already tested the 23.6% Fib retracement level of the recent wave from the $2,880 swing low to $3,131 high. Ether price is now trading above $3,080 and the 100 hourly simple moving average.  On the upside, an initial resistance is seen near the $3,090 level and a connecting bearish trend line on the same chart.

Source: ETHUSD on TradingView.com

The next major resistance is near the $3,120 and $3,130 levels. A close above the $3,130 level might start a steady upward move in the near term. The next major resistance could be near the $3,200 or $3,220.

Dips Limited in ETH?

If ethereum fails to gain pace above the $3,090 level, it could start a downside correction. An initial support on the downside is near the $3,080 zone.

The first major support is near the $3,040 level and the 100 hourly simple moving average. The next major support is near the $3,000 level. It is close to the 50% Fib retracement level of the recent wave from the $2,880 swing low to $3,131 high. If there is a downside break below the $3,000 support, the price could start another decline.

Technical Indicators

Hourly MACD – The MACD for ETH/USD is now losing pace in the bullish zone.

Hourly RSI – The RSI for ETH/USD is now above the 50 level.

Major Support Level – $3,040

Major Resistance Level – $3,130