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Ethereum price started a good recovery wave above the $3,240 area. ETH is rising and facing hurdles near the $3,480 area.
- Ethereum started a slight recovery wave above the $3,240 area.
- The price is trading above the $3,320 level and the 100 hourly simple moving average.
- There was a break above a short-term contracting triangle with resistance at $3,240 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could continue rising if it crosses the $3,480 resistance level.
Ethereum price gains more than 5%
Ethereum price has started a recovery wave above the $3,150 level like Bitcoin. ETH managed to clear the $3,180 and $3,240 resistance levels to move into a short-term positive zone.
Moreover, there was a break above a short-term contracting triangle with resistance at $3,240 on the hourly chart of ETH/USD. The pair even rose above the $3,350 and $3,400 levels. Finally, it tested the $3,480 area. The high was formed at $3,473 and the price is now consolidating its gains.
There was a slight dip below the 23.6% Fib retracement level of the upward move from the swing low of $3,186 to the swing high of $3,473. Ethereum price is now trading above $3,300 and the 100 hourly simple moving average.
On the upside, the price appears to be facing hurdles near the $3,450 level. The first major resistance is near the $3,480 level. The main resistance is now forming near $3,500. A clear move above the $3,500 resistance level could send the price towards the $3,550 resistance level.
A bullish break above the $3,550 resistance may require further gains in the coming sessions. In the mentioned case, Ether could rise towards the resistance area of $3,650 or even $3,720 in the near term.
Correcting the downside in ETH?
If Ethereum fails to break above the $3,480 resistance level, it could start another decline. Initial support on the downside is near the $3,350 level. The first major support is near the $3,280 Fibonacci retracement level, or 50% of the up move from the $3,186 swing low to the $3,473 swing high.
A clear move below the $3,280 support level could push the price towards the $3,240 support level. Any further losses could send the price towards the $3,120 support level in the near term. The next major support is at $3,050.
Technical indicators
MACD per hour – The MACD indicator for ETH/USD is losing momentum in the bullish zone.
Hourly RSI – The RSI for ETH/USD is now above the 50 area.
Key Support Level – $3,280
Major resistance level – $3,480