Ethereum holds the $ 3,120 support zone against the US Dollar. ETH price is consolidating and it looks like it may soon clear the $ 3,500 resistance zone. According to the technical analysis of NewsBTC’s Aayush Jindal:
- Ethereum holds its base above the $ 3,120 and $ 3,200 support levels.
- The price is still well below the $ 3,600 level and the 100 hourly simple moving average.
- There was a break above a key bearish trend line with resistance around $ 3,380 on the hourly chart of ETHUSD (based on Kraken data).
- The pair is likely forming a double bottom pattern near the $ 3,125 zone.
Ethereum (ETH) Price Shows Positive Signs
Ethereum continued its decline below $ 3,500 but remained stable above the $ 3,120 zone. ETH made two attempts to clear the $ 3,120 and $ 3,100 support levels, but the bears failed.
It seems that the price forms a double bottom pattern near the $ 3,125 zone, similar to Bitcoin. It was near the recent low of $ 3,127 before the price started a good recovery. ETH broke the $ 3,300 resistance level and rose above the 23.6% Fib retracement level of the last drop from $ 3,885 to $ 3,127.
There was also a break above a key bearish trend line with resistance near $ 3,380 on the hourly chart of ETH / USD. However, the pair is still well below the $ 3,600 level and the 100 hourly simple moving average.
Instant resistance is near the $ 3,450 level. The first major resistance is near the $ 3,500 level. This is near the 50% Fib retracement level of the last drop from $ 3,885 to $ 3,127. If the aforementioned double bottom pattern happens, the price is likely to rise above $ 3,500.
The next stop for the bulls could be $ 3,600 or the 100 hourly simple moving average for the bears to survive.
Will Ethereum (ETH) Fall More?
If Ethereum cannot continue above the $ 3,450 and $ 3,500 resistance levels, it could initiate another decline. Initial support on the downside is near the $ 3,350 level and the broken trend line.
Initial support is near the $ 3,300 level. The main support is currently forming near the $ 3,125 level. If there is a downside break below the $ 3,125 zone, the price could drop towards the $ 3,000 support.
- Hourly MACD – The MACD for ETH / USD is slowly entering the bullish zone.
- Hourly RSI – The RSI for ETH / USD is currently near the 50 level.
- Major Support Level: $ 3,300
- Major Resistance Level – $ 3,500
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